Luna Foundation Guard (LFG), the non-profit entity backing the original Terra chain, on Friday shared an update pertaining to the distribution of the remaining assets held in its reserve. In the aftermath of the Terra crash, the Singapore-based organization said it planned to compensate investors, specifically the small holders, using the balance from failed efforts to maintain the ecosystem’s peg and defend the chain from possible governance attacks.
“The Foundation’s remaining reserves consist of the following assets: 313 BTC, 39,914 BNB, 1,973,554 AVAX, 1,847,079,725 UST, 222,713,007 LUNA (of which 221,021,746 is currently staked with validators). The LUNA previously staked is unbonding, and will be returned in 20 days. The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first,” the LFG declared following May’s crash.
Legal matters impede distribution plans
LFG records show that the remaining holdings, including the Bitcoin loaned out to OTC trading entities as proposed by the LFG council, equate to $105.65 million at the time of writing. The figure represents a significant shrink from north of $4 billion at one point in May.
LFG Reserve Balance snapshot
The Foundation reaffirmed its intent to distribute the remaining assets to holders in the latest update but said “ongoing and threatened litigation” prevent it from going through with the same. The communication means holders impacted by the ecosystem crash will have to wait for an indefinite period for any form of reimbursement. While the team promised to share updates on new developments, it is unlikely that compensations will be made before all legal issues around Terra are resolved.
Several, including investor-turned-whistleblower FatMan Terra, challenged the response from Terra’s backing organization. In a comment, the pseudonymous user demurred and demanded that the LFG “fulfill [its] promise,” referring to the commitment to refund affected victims after ‘scamming’ them.
The LFG’s update comes in the same week South Korea’s markets regulator, the Financial Service Commission, was summoned to appear before lawmakers in the annual parliamentary audit. Among other agendas, the Thursday audit session sought to uncover the truth behind Terra’s crash. The annual event, however, didn’t bring forth much. Keen observers and other closely-following parties described it as one that underdelivered.
Still, investigations into the implosion of Terra continue, with the latest update on the same being the release of a previously arrested Terraform Labs’ employee. The reported arrest of Yoo Mo, who oversaw Terra’s general affairs and business operations, on Thursday marked the first apprehension of a person linked with the case by South Korean authorities.Bottom of Form
Terra (LUNA) down 87% since going live in May
The LUNA token, birthed as part of the new Terra chain in May, has lost value in equal measure, if not worse, as tokens that had peaked long before it went live. Market data shows that the token has retraced 87% from around $20 – its price on the first trading day. While no other top altcoin has recorded gains going by the 19-week timeline, the criticism of LUNA’s price action is reasonably fair. No top alts have slumped as much as it. For context, Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) have lost approximately 32%, 24% and 8.69%, respectively, during the same period.
More recently, LUNA price shot up earlier this week, trading as high as $2.70 following Binance’s announcement of the first LUNC token burn implementation.
LUNA/USD trading chart
The fleeting mild gains in the LUNA/USD pair were fueled by a positive market reaction after the exchange posted the first numbers representing the token equivalent of its spot and margin trading fees on LUNC pairs. Figures from this burn, valid until further notice, are updated every Monday. Binance CEO Changpeng Zhao revealed on Tuesday that the first reporting was $1.8 million in LUNC, roughly 5.8 billion LUNC.
LUNC token burn snapshot
LUNA was at writing on Sunday spotted hovering around $2.50 on the crypto aggregator platform CoinMarketCap. Markedly, this recent hype around LUNC has resulted in many within its community asking trading platforms like Gemini, Coinbase and Robinhood to consider listing the token.
The post Update: LFG Says Ongoing Probe Impedes Compensation Scheme, Binance’s First LUNC Token Burn Sets the Pace appeared first on Securities.io.
