In brief

  • The Lunar Foundation Guard, a nonprofit organization linked to Terra, claims it has raised $1 billion in a private token sale.
  • It says the money will be used for a “UST Forex Reserve denominated in Bitcoin.”
  • UST is a stablecoin that uses Terra’s LUNA to maintain its peg.

There’s been a lot of money flowing into crypto recently, with $100 million+ funding rounds becoming relatively commonplace. But a recent over-the-counter token sale has taken it to another level.

Terra and the Luna Foundation Guard (LFG), a nonprofit organization designed to support the Terra network, today announced a $1 billion token sale of LUNA led by Three Arrows Capital—headed by sometimes-Ethereum critic Su Zhu—and Jump Crypto—the same trading group that made Solana cross-chain bridge Wormhole whole after a $320 million hack.

The foundation did not respond to Decrypt‘s questions about the specifics of the raise, including whether the funds were raised directly in Bitcoin. Given the market downturn, the value of the raise could be less than $1 billion, depending on when the raise occurred.

LFG will use the funds to create what it calls a UST Forex Reserve. To understand why, you have to understand a bit about the Terra ecosystem, which includes both the native LUNA token and fiat-based stablecoins. 

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