Terra’s community The Luna Foundation Guard (LFG) added 2508 bitcoins worth over $100 million in its Bitcoin treasury on Wednesday. The LFG now has 42,406.92 BTC in its wallet address as a result of the current purchase.
However, despite purchasing Bitcoin for $250 million this week, it has been unable to boost the BTC price above $40k.
The price of Bitcoin (BTC) has dropped 11% in the last week, and it is currently trading at $39,938. Moreover, the LUNA price has not responded to the recent buy and is down about 27% over the last 7 days.
LFG Bitcoin Purchases Fail to Affect Bitcoin and LUNA Prices
Luna Foundation Guard (LFG) intends to build a $10 billion Bitcoin treasury to provide stability for its algorithmic stablecoin UST. The move is backed by Terra’s Founder Do Kwon’s ambition to make BTC become a reserve currency.
According to Bitinfocharts, the LFG purchased 2,508.94 BTC for $100 million on April 13. While the most recent purchase saw a small profit as BTC’s price appreciated. LFG has so far lost $96 million on its overall BTC acquisitions.
Furthermore, despite rumors of LUNA being burned, recent trends have caused alarm among LUNA investors as the price continues to fall. Moreover, some have accused the LFG of purchasing Bitcoin with burned LUNA supply.
Given LFG’s BTC accumulation of BTC, LUNA’s price will become more closely linked to BTC’s performance, which is currently at a trough. LUNA critics have also claimed that BTC volatility could threaten LFG’s reserves and in turn, the UST peg.
Bitcoin (BTC) and Terra (LUNA) Dropped Lower
Investor sentiment was shaken by yesterday’s crypto market bloodbath, with the crypto market index sliding into the ‘fear’ zone. According to CoinMarketCap, the price of Bitcoin has dropped almost 12% in the last 7 days, while the price of LUNA has dropped nearly 26% in the last week.
The BTC price has been swinging sideways in the last 24 hours, moving around the $40k mark. Meanwhile, the price of LUNA is up just 1%, currently trading at $85.43 at the time of writing.