Avalanche Foundation Seeking To Buy Back $56,795,000 in AVAX Sold to Luna Foundation Guard Before 2022 Collapse

The key organization backing the Avalanche (AVAX) blockchain ecosystem is announcing plans to repurchase crypto assets sold to the nonprofit behind the Terra (LUNA) protocol in the first half of 2022.

The Avalanche Foundation says it has negotiated an agreement to get back all AVAX tokens sold to the Luna Foundation Guard (LFG) in April 2022.

The organization adds that the plan is now awaiting a judicial green light amid the ongoing bankruptcy proceedings of Terraform Labs (TFL), the embattled startup behind the Terra blockchain.

“This action ensures that LFG would not violate the original agreement’s restrictions on the tokens’ use and shields the tokens from the complexity of a bankruptcy trustee liquidation, while returning 1.97 million AVAX to the Foundation’s holdings. This further enhances the Foundation’s ability to support the ongoing growth and development of the Avalanche ecosystem.”

On May 19th, 2022, just days after the implosion of the Terra (LUNA) protocol, Avalanche Foundation announced that both Terraform Labs and LFG had acquired AVAX tokens.

“Terraform Labs (TFL) purchased 1.09 million AVAX, with a one-year lockup. This amount represents around 0.5% of the past week’s AVAX volume.

Luna Foundation Guard (LFG) purchased 1.97 million AVAX, to be used for the Terra reserve pool. This allocation represents around 0.9% of the past week’s AVAX volume. Given the proposed Terra chain fork, LFG has disclosed no plans to use the AVAX.

Should any sales be contemplated for the LFG reserves, the Avalanche Foundation is ready to work with LFG on a sensible trading strategy.”

AVAX is trading at $28.90 at time of writing.

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The post Avalanche Foundation Seeking To Buy Back $56,795,000 in AVAX Sold to Luna Foundation Guard Before 2022 Collapse appeared first on The Daily Hodl.