$3.4 billion fell for UST defense on Terra

Deploying more capital, steady lads – Several months later the crash of the Terra Luna ecosystemand depeg of its main stablecoin, the USTfounder Do Kwon’s words still resonate in the mind of those affected by this cataclysmincluding your servant.

The Luna Foundation Guard publishes an audit concerning the defense of the UST

Eager to prove their sincerity as to the defense of the UST peg and the use of their reserves in various cryptos, Terraforms Labs (TFL) and the Luna Foundation Guard (LFG) have just released the report external audit established by the firm JS Held.

Without going into the details of the figures that populate the 31 pages of the audit reporthe concludes that the use by the LFG of almost all of its reserves to defend the UST peg between May 8th and 12th.

In total, these are nearly $2.8 billion that was used by LFG to defend the peg, however without success. This is at the origin of the authorities’ growing interest in the Dgulation of algorithmic stablecoins.

That is 80,081 bitcoins sold by LFG to acquire UST and support the main stablecoin of the Terra blockchain. As of May 12, only 313 of the 80,394 bitcoins remained in the pockets of the LFG, which constituted the Foundation’s main shield to support the ecosystem in the event of a hard blow.

This same report states that TFL also used $613 million of its own funds in this same battle to defend the UST peg.

Do Kwon’s famous message.

Following the publication of this audit report, the sulphurous Do Kwon, still wanted by the authorities, spoke. He indicated that it was important to distinguish the failure of a protocol (which wanted to be transparent and which advocated the use of an opensource and decentralized stablecoin that the efforts of its creators and developers were not enough to save ) the failure of certain centralized platforms whose players have used customers’ money to promote their own financial interests.

The collapse of Luna and the bankruptcy of FTX are there to remind us that we must remain cautious in this still very young ecosystem. Get into the habit of healthy distrust. To buy your cryptocurrencies, sign up now on Bitget and start getting acquainted with the exciting world of blockchain technology (commercial link).

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