Terra (LUNA), has aggressively filled up its reserves of trusted cryptocurrencies as a back-up for its stablecoin UST. Over time, this has expanded to include several cryptocurrencies. The current reserves are $2.38 million. The Luna Foundation still has a lot of work ahead. This report will take you through these reserve currencies, and how much each is allocated.
Diving Into Terra’s Reserves
As mentioned previously, Terra’s crypto reserves have gone up to as high as $2.38 billion since it first announced it was starting the reserves. Luna Foundation Guard is increasing its Bitcoin reserve, and plans to increase that amount to $10 billion. The pioneer cryptocurrency is now the biggest of these holdings. The list includes four cryptocurrencies, though there are many more.
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ERC-20 tokens are second behind Bitcoin, accounting for 23.2% of total reserves. They are the stablecoins USDC, and USDT. This totals $549.80 millions of these tokens which serve as USDT reserve coins.
Additionally, Terra’s native token, Luna, also makes the list of reserves used by the network. With a $172.20million dollar value and an overall token balance of 2.25 millions Luna tokens, it accounts for 7.2%.
Recently, the foundation bought an additional 123.89 BTC in order to increase its current reserves. It now has 42.53K BTC. Bitcoin was at the top of its reserves with 69.6%. This brings it to $1.66 Billion in dollar value.
Where’s AVAX?
As a means to counter rising competition, Terra announced last week that it would be adding AVAX to their reserves. It was a joint venture between Terraform Labs, Terraform Foundation and Luna Foundation Guard, who previously announced that Terra would purchase approximately $200 million worth AVAX for its reserves.
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Do Kwon, founder of Terra, had explained that the decision to add AVAX to Terra’s reserves had been fueled by the loyalty to the network. However, a look at LFG’s reserves shows that there is no AVAX in sight. This could indicate that AVAX has not yet been added to the foundation’s reserve.
Contrary to what was agreed with Avalanche Foundation: Terraform Labs, Avalanche Foundation, and Terraform Labs each hold $100m worth of AVAX. Terraform Labs, however, has $100m worth of LUNA while Terraform Labs holds $100m worth of UST.
Featured image taken from CryptoSlate. Chart by TradingView.com