The Luna Foundation Guard (LFG) has raised $1 billion in capital via an over-the-counter sale of LUNA, the native token of the Terra blockchain.
Source: The Block.
The fundraising, one of the biggest in the history of the crypto industry, was led by Jump Crypto and Three Arrows Capital, with GSR, Tribe Capital, and other investors taking part.
LFG, a non-profit organization based in Singapore, was created in January to grow the Terra platform.
The funds raised from the $1 billion sale will be utilized in creating a bitcoin-denominated forex reserve for UST, Terra’s biggest stablecoin.
UST is an algorithmic stablecoin that has become popular with the DeFi ecosystem. The stablecoin currently boasts a market capitalization of over $12 billion.
LFG stated that the reserve created via the $1 billion capital injection will act as a release valve for UST redemptions. The reserve is developed to ensure the price of stablecoin remains pegged to that of the dollar during sharp selloffs in crypto markets.