According to three sources, after the shock over the weekend, Luna foundation guard (hereinafter referred to as LFG), a non-profit organization headquartered in Singapore and committed to the ecological development of Terra blockchain, is now seeking to raise more than US $1 billion** On Monday, LFG's algorithmic stable currency (UST) fell to $0.61, but then rebounded to $0.91, the block reported.
(from: tradingview / via the block)
The breakaway from the US dollar has had a huge impact on market confidence. Even so, LFG is actively engaged with large encryption investors and market makers. It hopes to raise $1 + billion to support the troubled ust algorithm.
Unfortunately, in the case of the overall collapse of the cryptocurrency market, LFG is also difficult to survive. The relevant transaction negotiations are still in progress, and even give the opportunity to buy Luna tokens at half price (even if there is a two-year restriction period).
LFG did not immediately respond to requests for comment from foreign media, but it clearly tried to inject confidence into the market through various means.
On Monday, for example, LFG announced that it had lent $1.5 billion worth of BTC and ust to third parties, although it initially sought to buy up to $10 billion worth of BTC to maintain the stability of UST.
As an algorithmic stable currency, ust needs Luna token to maintain its anchoring with the US dollar. Through a set of special coinage / consumption codes, Luna can maintain the 1:1 exchange relationship between ust and the US dollar for a long time.
However, critics point out that the success of this wave of operations depends on how strong Luna's price is. And anchor, its key decentralized financial platform, should also be able to continuously generate up to 20% of revenue to stimulate liquidity.
The recent trend shows that the total amount of anchor has fallen rapidly from a high of $14 billion to less than $10 billion. If market confidence remains, arbitragers can still take this opportunity to buy low and sell high.
Unfortunately, a large number of ust withdrawals in the past two days have put great pressure on Luna's system.