The Luna Foundation Guard (LFG) and Terraform Labs (TFL), both Terra blockchain supporters, announced that they have purchased $200 million in Avalanche’s AVAX tokens from the Avalanche Foundation.
According to an Ava Labs spokesperson, LFG acquired $100 million in AVAX tokens using its UST stablecoin in an over-the-counter (OTC) exchange with the Avalanche Foundation.
According to a Terra tweet, TFL, the business that is assisting in the construction of the Terra blockchain, has also completed a $100 million LUNA to AVAX token exchange in order to “strategically align ecosystem incentives.”
Following the two transactions, the Avalanche Foundation now owns $100 million in UST and $100 million in LUNA.
LFG has recently been on a crypto purchasing spree, adding more than $1.6 billion in bitcoin to its treasury reserves to support Terra’s UST stablecoin. Last month, Terra co-founder Do Kwon said that LFG would buy up to $10 billion in bitcoin for its treasury.
The Avalanche partnership is LFG’s second layer, one token contribution to its treasury. The announcement, made around midday Thursday, sent the price of AVAX up from $84 to $87 per coin, a gain of nearly 4% as of press time.
According to CoinGecko, LUNA, Terra’s native coin, was trading at $104.32. Terra also said that it will be working with Avalanche on a new gaming network, the specifics of which will be revealed “at a later time.”
In a tweet, Emin Gün Sirer, the founder of Avalanche, said that he expected more Terra apps to be added to Avalanche because of the partnership.
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