Luna foundation guard (hereinafter referred to as LFG), which is committed to promoting the development of Terra ecosystem, has not answered key questions about its BTC reserves after the current round of cryptocurrency crash The block reported that LFG had accumulated 70736 BTCs (worth more than US $2 billion) as "strategic reserves" for UST algorithm stable currency, but unfortunately it fell into a secondary crisis caused by serious decoupling in the past week.
It is reported that although LFG has this BTC asset to save UST, it has become quite difficult due to the collapse of cryptocurrency environment.
As a stable currency, ust should have always maintained its 1:1 anchor with the US dollar. However, after a rapid decline, its latest currency value has been lying around us $0.12.
During this period, LFG provided us $750 million of BTC "loans" to OTC companies and market makers, but unfortunately, its desire to maintain the stability of ust currency finally failed.
However, it was pointed out sharply that after this round of turmoil, LFG should still have more than $1.2 billion in BTC reserves.
Strangely, the Luna foundation delayed disclosing any details about the funds until it gave the wallet address with the balance cleared in a tweet on Tuesday.
The block pointed out: it is unclear where LFG sent all the reserves, because BTC blockchain does not mark private wallets on the chain.
Mika honkasalo, a former research analyst and now an independent cryptocurrency researcher, mentioned:
The problem is that LFG does not clearly disclose how these funds are spent. Since part of them worth $750 million has been lent to market makers, how is the rest transferred out of the wallet?
There is no indication of how they operate, but this should have been an easy question to resolve.
Last week, LFG said on twitter that it had accumulated 80394 BTCs in its reserve account. However, according to the block research, the wallet address containing an additional 9658 BTCs was not disclosed, and LFG did not explain their whereabouts.
In addition, LFG did not disclose the details of the publicly announced loan of US $750 million, such as who the recipient is, what interest rate it lends, and the current situation of relevant assets.
Honkasalo speculates that LFG may have sold all BTC reserves to support the UST algorithm currency anchored to the US dollar. Or some of them are still reserved for other purposes that have not been decided or announced.
It was reported earlier that LFG was seeking more than $1 billion in financing to renew the life of the terrausd project. However, these efforts appear to have subsided, as the foundation has not issued any statements in this regard.
Finally, although the block sent an interview invitation to LFG, its representative argued that he was overwhelmed by "a lot of requests" and recommended following the official twitter account for the latest news.