Brussels, Europe Brief News – Bitcoin (BTC) failed to rebound from the losses and was not able to reclaim $30,000 on May 14. However, the traders are looking forward to a more stable weekend.
Terra Plans Spark Frenetic LUNA Moves
The traders and investors are paying special attention to the blockchain protocol Terra’s LUNA token. Since we know that Terra LUNA almost lost all of its value within a week. But in the last few hours, we have seen a massive rebound that is still tiny compared to its all-time high.
Although its supply is reaching 6.9 trillion tokens, LUNA subsequently appreciated 100 times its floor price on news that Terra had plans to revive its ecosystem.
The trading for LUNA has temporarily stopped on Binance; LUNA/USD remains a highly risky portfolio addition as the price changes massively within minutes.
Now the question arises what happened to the terra bitcoin reserve, which was placed to stabilize the coin.
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What Happened to the $3.5B Terra Bitcoin Reserve?
Unless you were busy in the last few weeks, you likely already know that $3.5 billion of bitcoin was created to support TerraUSD(UST) to be in a stable state.
It is clear that those reserves were useless and could not stop depegging. Due to this, people have lost billions of their assets in the terra LUNA as the market crashed. The coin never seemed to be able to hold itself from losing it all.
We could say that this may happen due to the lack of support or the support that was never helpful.
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Tom Robinson, the co-founder and chief scientist of Elliptic, said, “ where bitcoin is held and how it is used will be vital for investors seeking to recoup losses suffered through exposure to UST.”
Terra Labs CEO Do Kwon has tweeted that the documentation regarding the reserve use during the de-pegging event would be forthcoming.
Furthermore, when the value of UST started to drop at the start of the last week, LFG announced that it would begin to dispose of its bitcoin reserves and purchase UST.
But the question remains where the terra bitcoin reserves have gone if they were placed to rescue LUNA?
