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Terra’s LFG Adds 4,130 BTC To Its Reserve Following AVAX Purchase



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The Terra ecosystem has been building up its reserves in recent weeks, and Bitcoin has been the token of choice. According to Terraform Labs (TFL), CEO Do Kwon, in the long run, the aim is to reach a total of more than $10 billion in Bitcoin reserves. Yesterday, Terra’s Luna Foundation Guard shelled out $176 million in another Bitcoin purchase – adding 4,130 BTC to its decentralized forex reserve.

Terra holds $1.7 billion in its Bitcoin-denominated reserve

The latest addition was completed in four deposits of 1,482 BTC, 492 BTC, 1,174.99 BTC, and 981 BTC respectively. In total, 66 transactions have been made to the wallet with none being recorded out since its creation.

LFG’s Bitcoin wallet now holds 39,897.98 Bitcoins, collectively valued at nearly $1.7 billion based on current prices.  Notably, the move comes less than a week since the organization revealed a partnership with the Avalanche Foundation which involves a purchase of 100 million worth of avalanche (AVAX). Prior to this, LFG had completed a $230 million buy at the start of last week.

Terra’s LFG and TFL buy a combined $200 million in AVAX tokens

Terraform Labs and the Luna Foundation Guard (a non-profit organization backing Terra’s UST stablecoin) at the end of last week said they added new reserves worth $200 million, this time of Avalanche’s AVAX tokens. The LFG paid from its UST stablecoin reserves to the Avalanche Foundation for $100 million worth of AVAX, and TFL gained $100 million of AVAX by completing a swap with Terra’s native LUNA token.

The purchases go along with the plan to make UST a more lucrative and consistent stablecoin via ensuring backing by a “diversified and non-correlated asset pool supporting the UST peg.” Notably, AVAX is the first crypto token added to the reserves outside of market-dominant Bitcoin.

Do Kwon told Bloomberg that the decision to settle on the Avalanche blockchain was inspired by the consistent growth that its ecosystem has shown. He also cited the fact that Avalanche users are loyal followers, also terming Avalanche one of the most exciting networks in the Web3 space.

Avalanche founder Emin Gün Sirer expressed his belief that soon, Terra applications will balloon onto the Avalanche as a result of this agreement. Also, Terra will be taking up Avalanche’s innovative subnet technology, he said, though not disclosing any specifics about the initiative.

LongHash Ventures launches Accelerator program targeting the Terra ecosystem

Web3 capital investment firm LongHash Ventures last Monday announced the launch of LongHashx Accelerator on Terra, a program targeted at enhancing the development and innovation of startups and the new iteration of the internet. Via the program, startups could eventually gain up to $500,000 in funding, with an application deadline set for May 13.

Following the partnership, the builders and founders who will participate in the LongHashx Accelerator Terra cohort will gain guidance in six critical areas, including tokenomics, fundraising, tech mentorship, community building, and product strategy & design, over a 12-week period. Further, LongHash will also hold weekly workshops and chats with key figures in the industry.

All this is towards a goal the venture capital firm has, targeting boosting the Accelerator program this year. According to Emma Cui, a founding partner at the firm, Terra offers just the ecosystem needed towards the goal to scale, owing to its impressive protocols and developments.

Eventually, at the end of the twelve-week period, there’ll be a ‘Demo Day’ during which projects will get an opportunity to pitch their conceptual ideas to potential investors. Notably, LongHash Ventures has launched other forays into Web3 ecosystems, including Algorand, Filecoin, and Polkadot.

Terra (LUNA) price action

Terra’s native token LUNA is down more than 22% over the past seven days, CoinMarketCap data shows. LUNA is changing hands at $88.04 against the dollar having dropped 7.34% in the last 24 hours. The pullback comes amid a market-wide slump on Monday.

LUNA/USD trading chart

That said, it has to be noted that LUNA is one of the crypto that have seen a relatively larger dip. For context, Bitcoin has fallen 1.07% while Ethereum has lost 2.78% over the same period. While both are trading lower than their mark last week, they are yet to hit double figures over the 7-day timeframe. Solana’s SOL has fallen by nearly the same margin as LUNA over 7 days but the former is only down 1.95% on the day.

To learn more about Terra visit our Investing in Terra guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.

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