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Terra buys US$200 mln AVAX to back UST, promote cross-chain development

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Terraform Labs (TFL) and the Luna Foundation Guard (LFG), the non-profit behind the Terra ecosystem, have acquired US$200 million worth of Avalanche’s AVAX tokens, diversifying its TerraUSD (UST) reserves beyond Bitcoin. 

See related article: Terra’s US$10 billion Bitcoin Bet Sends LUNA to Record High

Fast facts

  • LFG purchased US$100 million worth of AVAX using UST stablecoins in an over-the-counter trade with Avalanche Foundation to add to its UST reserves. 
  • TFL announced a further US$100 million Treasury Swap for AVAX to demonstrate its commitment to Avalanche through cross-chain development and collaboration — Terra and Avalanche are currently collaborating on a gaming subnet.  
  • Earlier this week, around US$230 million worth of Bitcoin was added to the reserves for UST, pushing its total Bitcoin reserves to around US$1.6 billion. 
  • Terra founder Do Kwon had announced that Terra will add US$10 billion worth of Bitcoin to UST reserves in March. 
  • Luna, which set an all-time high of US$119.18 on Wednesday, was trading at US$105.90 at press time, down 2.3% in the last 24 hours. 

See related article: Terra founder bets millions on LUNA’s annual growth





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