The BTC sold by the Luna Foundation Guard has stirred the market. But there may be a silver lining.
Amidst the market-wide chaos, it is the mid-sized Bitcoin holders that have held on to the old investment adage of “buy the dip.” Data suggested that entities holding less than 100 BTC in their wallets appear to have raked in all of the dumped Bitcoins.
Fetching Dumped Bitcoins
The de-pegging of UST forced Luna Foundation Guard (LFG), the entity created to support the Terra ecosystem, to liquidate over 80k BTC. This ensued a crypto bloodbath that was exacerbated by Terra’s failure to resuscitate both tokens’ values. As a result, investors found their portfolios dipping into the red.
However, the crypto analytic company, Glassnode revealed that the volume of supply held by entities with less than 100 BTC has increased by 80,724 BTC since the fateful day nearly three weeks ago.
Interestingly, the volume of supply held by entities $BTC has since increased by 80,724 $BTC.
This shows a transfer from LFG, to $BTC holders. pic.twitter.com/I9mlxVrOFA
— glassnode (@glassnode) May 30, 2022
Luna Foundation Guard Under Investigation
Both the platforms associated with Terra are now under massive scrutiny from the South Korean regulators. The police had asked cryptocurrency exchanges to freeze LFG’s accounts and prevent withdrawals of corporate funds held at these platforms. The authorities are now looking into the details of cash and crypto transactions.
The Financial and Financial Securities Crime Joint Investigation Team of the Seoul Southern District Prosecutor’s Office have also reportedly launched an investigation on Terraform Labs and its co-founders.
Despite big restoration efforts, Terra 2.0 has been up to a rocky start. The new token – LUNA – was airdropped last week. Several crypto exchanges came forward and announced support for the recent revival plan. The token has been on a wild ride, surging from $0.5 to $30 and then dropping all the way down to $4 (on some exchanges). It is currently trading around $5.4 at the time of this writing.