BTC Sold By LFG Gets Absorbed By Addresses With Less Than 100 BTC

The BTC sold by the LFG or Luna Foundation Guard was absorbed by an address with less than 100 BTC but there could be a silver lining still, so let’s find out today in our latest Bitcoin news.

Amidst the market chaos, the mid-sized BTC holders held on to the old investment adage of buying the dip but the data suggests that the entities that hold less than 100 BTC in their wallets seem to have raked in on the dumped BTC. The de-pegging of the UST stablecoin forced the LFG the entity created to support the ecosystem to liquidate over 80K BTC which ensured a crypto bloodbath that was exacerbated by the failure of Terra to resuscitate both the tokens’ values and as a result, the investors found their stash dipping into the red.

During the $LUNA triggered sell-off in early May, a total of 80,081 $BTC were liquidated by the Luna Foundation Guard.

Interestingly, the volume of supply held by entities < 100 $BTC has since increased by 80,724 $BTC.

This shows a transfer from LFG, to <100 $BTC holders. pic.twitter.com/I9mlxVrOFA

— glassnode (@glassnode) May 30, 2022

The crypto analytic company Glassnode, revealed that the volume of supply held by entities with less than 100 BTC increased by 80,724 BTC since three weeks ago. The BTC sold by LFG got absorbed in mid-sized wallets and both platforms associated with Terra got under a lot of scrutiny from the South Korean regulators. The police asked crypto exchanges to even freeze the LFG accounts and to prevent the withdrawal of the corporate funds at these platforms. The authorities are looking into the details of the crypto transactions and the Financial Securities Crime Joint Investigation Team launched an investigation on the employees of the platform and the founder, Do Kwon.

Despite the big restoration efforts, Terra 2.0 was up to a rocky start and the new token LUNA 2 was airdropped last week. A few crypto exchanges came forward and announced support for the revival plan but the tokens as on a bumpy ride from $0.5 to $30 and then dropping again to $4.

As recently reported, The mismatch in the reported price of the underlying assets on the synthetic assets DEFI platform Mirror Protocol caused a huge exploit that has the potential to drain the funds entirely. The exploit was observed on Sunday by Mirroruser governance participants and at the time of writing, the Mirror BTC, Mirror Polkadot, Mirror Ether, and Mirror Galaxy pools on the protocol lost almost all assets that were valued at $2 million. Mirror allows trading of these synthetic assets like stocks or crypto on the Terra and Terra Classic Layer-1 blockchain, Ethereum, and BNB chain.