👉👉Avalanche Agrees with Terra (LUNA) to Repurchase Coins: Risk Reduced! 👈👈

Avalanche Foundation has reached an agreement with Terraform Labs’ bankruptcy administration to repurchase 1.97 million AVAX tokens that remained in limbo following the collapse of the Terra ecosystem.

This move came to the fore following the collapse of Terra’s ecosystem, which was supported by UST and LUNA tokens, in May 2022. Singapore-based Luna Foundation Guard had aimed to strengthen Terra’s reserves by purchasing $100 million worth of AVAX coins in April 2022. However, Terra’s bankruptcy has made the future of these coins uncertain.

Avalanche Foundation’s announcement stated that this purchase will prevent LFG from bypassing the token usage restrictions in the original agreement and will protect the coins from the complexities of the bankruptcy process. However, no information was provided about the financial details of the agreement. The current market value of 1.97 million AVAX is around $58 million, which is 42 percent below its original $100 million valuation.

The deal is expected to be approved by the court handling Terraform Labs’ bankruptcy case. Previously, in September, a bankruptcy judge approved Terraform Labs’ request to cease operations. This approval came after the agreement with the SEC.

According to the Avalanche Foundation, this transaction will further contribute to the development of the Avalanche ecosystem. This was well-received by the AVAX community. According to TradingView, the AVAX price rose from $25.14 to $29.57 after this announcement.

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