Where have Terra’s Bitcoin reserves gone?
crypto site’The Blockwrote Friday that the Luna Foundation Guard (a foundation created to support the growth of the Terra ecosystem) has yet to answer a crucial question about its Bitcoin reserves.
No information has yet been released as to what happened to more than $1.2 billion in Bitcoin reserves held by the Luna Foundation Guard, according to the site.
The company has amassed more than $2 billion in bitcoin reserves in recent months to support the UST stablecoin. This foundation provided a $750 million loan to Bitcoin during the crash. However, the rest of the Bitcoin reserves remain without a trace.
Binance CEO said earlier this week that he was deeply disappointed with the way the Terra team handled the collapse of its stablecoin and its LUNA token.
The tokens collapsed when UST lost its peg to the US dollar, putting incredible pressure on LUNA to keep its price high. Due to the way the two tokens are designed to interact with each other, this led to a massive increase in supply in LUNA and a resulting price crash.