Avalanche (AVAX) Slumps 5% In Minutes On Fears Of Terra Dump

 Avalanche (AVAX) Slumps 5% In Minutes On Fears Of Terra Dump

Avalanche (AVAX) slumped on Monday as traders feared that the Luna Foundation Guard (LFG) could dump its holdings of the token.

AVAX is trading at $32.41, down 6% over the past 24 hours. The token’s losses were triggered just after the Luna Foundation Guard said it intends to use its remaining reserves to return some value to UST holders.

This could entail a possible liquidation of its AVAX holdings. The LFG currently holds nearly 2 million AVAX tokens, valued at $65.2 million. It had purchased the tokens earlier this year in order to diversify its UST reserves.

LFG sold over 80K BTC

In a huge revelation, LFG mentioned the possible steps it took to stop the crash. The foundation disclosed that on May 7, 2022 the fund held over 80K BTC, 39.9 BNB, 1.97 Million AVAX and other cryptocurrencies. In order to avoid the crash, LFG sold or swapped 80,081 Bitcoins and other holding tokens. As per the data, the foundation is now holding 1,973,554 AVAX, 39,914 BNB, just 313 BTC, and other coins.

The amount of Avalanche and BNB tokens has remained the same. The foundation’s announcement to use remaining assets to compensate the remaining and smallest holders has raised the anticipation of further price dump.

While the LFG’s BNB holding amounts to be $11 million. The BNB token is trading at an average price of $298, at the press time. The token has shown marginal growth in the last 24 hours.

Binance’s LUNA investment valued at $3000

On May 8, when de-pegging of the UST began, the AVAX token was trading at a price of over $54. The LFG’s AVAX valuation stood at $106.5 million. AVAX’s price has dropped by over 30% in the last 7 days. Meanwhile, Terra’s stablecoin UST is trading at an average price of $0.126. The token has seen a massive dump of more than 87% in the last 7 days.

However, the LFG is also holding 1.84 billion UST (approx $236 million) and 222.7 million LUNA (approx $45.5 million). Meanwhile, Binance’s CEO CZ revealed that they invested around $3 million in the LUNA. That investment is now valued at $3000.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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