Avalanche (AVAX) slumped on Monday as traders feared that the Luna Foundation Guard (LFG) could dump its holdings of the token.
AVAX is trading at $32.41, down 6% over the past 24 hours. The token’s losses were triggered just after the Luna Foundation Guard said it intends to use its remaining reserves to return some value to UST holders.
This could entail a possible liquidation of its AVAX holdings. The LFG currently holds nearly 2 million AVAX tokens, valued at $65.2 million. It had purchased the tokens earlier this year in order to diversify its UST reserves.
LFG sold over 80K BTC
In a huge revelation, LFG mentioned the possible steps it took to stop the crash. The foundation disclosed that on May 7, 2022 the fund held over 80K BTC, 39.9 BNB, 1.97 Million AVAX and other cryptocurrencies. In order to avoid the crash, LFG sold or swapped 80,081 Bitcoins and other holding tokens. As per the data, the foundation is now holding 1,973,554 AVAX, 39,914 BNB, just 313 BTC, and other coins.
The amount of Avalanche and BNB tokens has remained the same. The foundation’s announcement to use remaining assets to compensate the remaining and smallest holders has raised the anticipation of further price dump.
