Strong hands have hastily grabbed hold of Bitcoin sold by LFG as it strove to save its stablecoin’s peg
On-chain data provider Glassnode tweeted that all Bitcoins sold by Luna Foundation Guard around May 9 found a new home in the wallets of entities that previously held less than 100 Bitcoins.
LFG drops Bitcoin; UST, LUNA crash
At the start of May, the Luna Foundation Guard dumped a total of 80,081 Bitcoins bought at the price of $33,000, even though they had bought it at $47,000. Overall, LFG sold $1.5 billion worth of the world’s flagship cryptocurrency.
This was announced as a “loan” to market makers to support the dollar peg of the LFG stablecoin UST. Founder and CEO Do Kwon then tweeted that the funds earned would be used to restore UST’s lost balance, promising that they would buy more Bitcoin if there was excess demand.
In the end, this measure did not help and UST lost its USD peg, crashing below $1, with LUNA dropping from above $119 to $0.00001675 over two weeks ago. This event caused a major drop in the crypto market, pushing prices of Bitcoin, Ethereum and other major and smaller cryptocurrencies way down.
Bitcoin fell below $30,000 and Ethereum saw its price drop below $2,000.
Recently, a hard fork was made, turning the old version of Luna into Luna Classic, which is still trading at $0.0001527 and giving the Luna title to a new coin, which is changing hands at $6.30 at the time of this writing.
Entity supplies amount to 80,724 BTC
According to a recent tweet from analytics firm Glassnode, entities that held less than 100 Bitcoins in their wallets quickly purchased all 80,081 Bitcoins dumped by Luna Foundation Guard in the crypto market.
The comprised holdings of these wallets have by now increased to the level of 80,724. The tweet says that the Bitcoins sold by Luna have been bought by more than 100 addresses.
