The Luna Foundation Guard (LFG) has been fighting to save its embattled UST stablecoin, which has yet again fallen out of favor with the dollar.
The Luna Foundation Guard, a Singapore-based non-profit that maintains the Terra network, has been reaching out to investors in the hopes of obtaining funding to save the beleaguered stablecoin.
According to The Block, which claims “those acquainted with the subject,”… The LFG is aiming to raise more than $1 billion to collateralize the UST stablecoin.
The development is unsurprising given that the stablecoin has decoupled from the US dollar, falling below $0.70 twice this week.
Nobody is concerned
Kwon Do, the founder and CEO of Terraform Labs, has remained silent about the debacle. Then, and the funding has yet to be confirmed. So, To say the least, his most recent Twitter message at the time of writing was cryptic:
This comes after a post a few hours ago that stated…
On May 10, the Luna team issued some clarifications in response to the flood of misinformation that has swept the mainstream media. There will be no “death spiral” if the UST market capitalization exceeds that of LUNA, the token that serves as collateral.
It also noted that user on-chain activities and Terra economy demand. Such as network economic activity and accompanying cash flow, support UST.
Related Posts – This was a major factor in Bitcoin’s (BTC) drop to $35,000
