Non-profit Luna Foundation Guard (LFG) has raised $1 billion in a private sale of the crypto asset LUNA to several investors.
The sale, which has become one of the largest in the history of the sector, was led by Jump Crypto and Three Arrows Capital. However, DeFiance Capital, Republic Capital, GSR, Tribe Capital and other market players have also taken part in it.
The funds raised will reportedly be used in the UST Forex Reserve, an initiative that aims to maintain the stability of UST, a key element of the Terra ecosystem.
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According to the organization's representatives:
"The $UST Forex Reserve is an LFG initiative to provide a further layer of support for the $UST peg using assets that are considered less correlated to the Terra ecosystem, like Bitcoin."
The LFG has noted the reserve fund will serve as an "escape valve" to redeem the algorithmic stablecoin during periods of sharp declines in the crypto market.