LFG continues its path to $10B in Bitcoin and is now spending UST in order to make the purchases
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Luna Foundation Guard has purchased another 37,863 Bitcoins taking them into the top 10 Bitcoin holders in the world. In a Twitter thread, they announced, “The LFG has acquired an additional 37,863 Bitcoins totaling ~$1.5 billion in OTC swaps with @GenesisTrading and 3AC.”
Genesis Trading is one of the largest providers of digital assets to institutional organizations. It has managed $11.4 billion in spot trades in Q1, meaning this LFG transaction accounts for almost 10% of its quarterly activity in a single trade.
According to the announcement, it has also managed $44 billion in loan originations, $27 billion in derivatives, and $14 in active crypto loans though LFG has only used its spot services.
The acquired BTC brings the LFG’s total holdings to ~80,394 Bitcoins.
At current levels, this equates to roughly $2.9 billion, some $6.3 billion behind the top wallet belonging to Binance. Other whales in the Bitcoin top holders include Microstrategy with approximately 120,000 Bitcoins and Bitfinex with 168,010 Bitcoins.
Interestingly, LFG used [cs_coin]UST[/cs_coin] to purchase the Bitcoin from Genesis. UST is the Terra-made algorithmic stable coin for which Bitcoin will be used as a safeguard. Terra founder, Do Kwon, declared earlier this year that LFG would acquire $10 billion in Bitcoin before Q3 in 2022. This leaves around $7.1 billion in additional trades expected this year before Q3.
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard,” Kwon said.
