Oct 14, 2024

6thTrade

In April 2022, the Luna Foundation Guard (LFG)—a Singapore-based nonprofit backing the Terra ecosystem, then featuring its once-prominent stablecoin UST and token LUNA—made headlines with a $100 million purchase of Avalanche's AVAX tokens. The move was intended to bolster its reserve assets, as UST was the fourth-largest stablecoin at the time, according to The Block.

However, the rapid collapse of Terra in May 2022 left the fate of these AVAX tokens uncertain. Now, the Avalanche Foundation has announced a fresh deal to buy back the 1.97 million AVAX tokens from Terraform Labs' bankrupt estate.

In a post on X, the Avalanche Foundation explained that this acquisition would ensure the tokens remain within the bounds of the original agreement, shielding them from the potential turmoil of a bankruptcy trustee liquidation. While the foundation didn’t reveal exact terms, the current market value of the tokens is about $56 million—marking a 44% drop from their initial $100 million valuation.

This repurchase deal is subject to approval from the bankruptcy court overseeing Terraform Labs' estate. A bankruptcy judge recently approved the wind-down of Terraform Labs in September after the company settled with the SEC.

Following the announcement, AVAX's value surged over 13%, rising from $25.16 on October 10 to around $28.50. The token has been buoyed by growing excitement around Off The Grid, a video game powered by an Avalanche Subnet, that has an economy built within the Avalanche ecosystem, according to The Block’s Avalanche Price Page. $AVAX



Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.


#MemeCoinTrending #6thTrade #Market_Update