The Avalanche Foundation is reportedly in talks to buy back 1.97 million AVAX tokens it sold to the Luna Foundation Guard (LFG) before April 2022. The repurchase is part of a broader effort by the Avalanche Foundation to stabilize the AVAX ecosystem following the collapse of Terra (LUNA). The LFG was a non-profit organization established to support the Terra ecosystem. In April 2022, the LFG sold a large portion of its AVAX holdings to fund the purchase of bitcoin (BTC) in an attempt to defend LUNA's dollar peg. However, LUNA's peg failed, and the LFG was forced to sell its remaining assets to cover its debts. The Avalanche Foundation's decision to buy back the AVAX sold to the LFG is a sign of confidence in the long-term prospects of the Avalanche ecosystem. The AVAX token has been under pressure in recent months, but the Foundation's buyback could help to stabilize its price.
Avalanche FND to Repurchase 1.97M AVAX from LFG
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AVAX
22.02
-3.29%
LUNA
0
%
BTC
87,353.87
-0.30%
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