Last chance failed. Not even $ 3 billion saved the cryptocurrency from total value loss

Crypto investors around the world, trying to find out what happened to the nearly $ 3 billion bitcoins that were supposed to save TerraUSD’s stablecoin from total collapse, finally got the answer.

The portal drew attention to the topic CNBC.

Fall in value

We informed you about last week dramatic collapse of algorithmic stablecoin TerraUSD (UST), which after a steep fall ended at the level of $ 0.30, which represents a drop of 70%. At the time of writing, its price is around $ 0.12.

Stablecoin also sank its parent project, the cryptocurrency Terra (LUNA). It has virtually no value today.

UST is the third largest stablecoin and the largest so-called algorithmic stablecoin.

It has been designed so that its value follows the value of the (real) US dollar, through advanced algorithms and smart contracts that adjust the supply of issued tokens as needed without the need for reserves, similar to what central banks do.

In UST, the system also relied on traders who burned or created tokens at low profits, which kept UST’s price stable. The token was theoretically supposed to sell for $ 1, but its price fell under the pressure of the sale of the cryptocurrency market, which further increased the panic in the market.

What about the reserve?

Through the Luna Foundation Guard (LFG), he has amassed billions of dollars in Kwon, which created the UST, to support the UST in times of crisis.

More specifically, the LFG amassed more than 80,000 bitcoins, which were worth nearly $ 3 billion last week. In addition, this reserve fund was made up of other currencies.

Kwon promised in advance that he would use bitcoins in the event of a dramatic drop in UST.

He then announced on his Twitter Monday that he missed almost all the bitcoins that were in reserve last week in a futile attempt to save the UST. According to available information, LFG has 313 bitcoins left, or about $ 9.4 million.

The LFG revealed on its Twitter that last week, in an effort to prevent a total collapse, it began converting this reserve to UST. The sale took place through “on-chain swaps”, but there was also the aforementioned transfer of bitcoins to the counterparty’s account.

Analyst firm Blockchain Elliptic shows that 52,189 bitcoins have been transferred to a single Gemini covered exchange account through multiple transactions, while the remaining 28,205 bitcoins have been transferred to a Binance exchange account in a single transaction, the portal writes. Abplive.

LFG also states on Twitter that it carried out the conversion process by executing on-chain swaps and transferring 52,189 BTC to the counterparty for UST 1,515,689,462. However, even that was not enough to normalize the system, so LFG transferred another 33,206 BTC for 1,164,018,521 UST, leaving the reserve at 313 BTC. LFG’s total crypto reserves are currently at $ 81 million, the portal writes CoinQuora.

According to Tom Robinson, co-founder of Elliptic “It is not possible to identify whether these assets have been sold or transferred to other wallets”.