The Luna Foundation Guard’s 80k Bitcoin Sold to Save UST’s Peg Were Likely Scooped Up By BTC Whales

2 years ago

The Luna Foundation Guard's 80k Bitcoin Sold to Save UST's Peg Were Likely Scooped Up By BTC Whales 4

Summary:

Earlier this month, the Luna Foundation Guard drained its 80k Bitcoin reserves to prevention UST’s peg.
According to Glassnode, the Bitcoin sold to prevention UST’s peg apt ended up being bought by small-time BTC whales owning little than 100 coins.
The Luna Foundation Guard present holds 313 Bitcoin, down from 80,394 BTC declared connected May 7th, 2022.

According to an investigation by the squad astatine Glassnode, the Luna Foundation Guard’s (LFG) 80k Bitcoin sold successful an effort to prevention UST’s peg apt ended up being bought by tiny BTC whales holding little than 100 coins. The Glassnode squad shared their insights into the destiny of the LFG’s 80k Bitcoin reserves done the pursuing statement and accompanying chart.

During the $LUNA triggered sell-off successful aboriginal May, a full of 80,081 $BTC were liquidated by the Luna Foundation Guard.

Interestingly, the measurement of proviso held by entities < 100 $BTC has since accrued by 80,724 $BTC.

This shows a transportation from LFG, to <100 $BTC holders.

The Luna Foundation Guard Now Left with 313 Bitcoin

As to the travel of the LFG’s Bitcoin during its effort to prevention UST’s peg, a report by the squad astatine Elliptic.com concluded that the transfers of Bitcoin started connected the greeting of May 9th erstwhile 22,189 BTC was sent to a caller address. Later on, the LFG sent different 30k Bitcoin to the aforesaid address, and wrong hours, a full of 52,189 BTC had been sent to the Gemini exchange. The pursuing day, 28,295 BTC was sent to Binance.

In a May 16th Tweet, the LFG broke down however its BTC reserves were sold to prevention UST’s peg. Their mentation kicked disconnected with the declaration that it held 80,394 Bitcoin arsenic of May 7th, 2022.

1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the pursuing assets:
· 80,394 $BTC
· 39,914 $BNB
· 26,281,671 $USDT
· 23,555,590 $USDC
· 1,973,554 $AVAX
· 697,344 $UST
· 1,691,261 $LUNA

— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022

As UST mislaid its peg, the LFG started selling its Bitcoin to person it into UST. It explained:

…when the terms of $UST began to driblet substantially beneath 1 dollar, the Foundation began converting this reserve to $UST.

The Foundation did truthful by straight executing on-chain swaps and transferring $BTC to a counterparty to alteration them to participate trades with the Foundation successful ample size & connected abbreviated notice.

During the process, the LFG transferred the earlier mentioned ‘52,189 Bitcoin to commercialized with a counterparty, nett of an excess of 5,313 BTC that was returned, for an aggregate 1,515,689,462 UST.’ Another 33,206 Bitcoin was sold for an aggregate of 1,164,018,521 UST.

The squad astatine the Luna Foundation Guard concluded their study connected the destiny of its Bitcoin reserves by providing the pursuing update of its holdings arsenic of May 16th.