Luna Foundation Guard (LFG) temporarily emptied its Bitcoin wallet containing 42,530.82 BTC. The foundation said it is trying to keep TerraUSD (UST) pegged to the dollar due to the volatility of the crypto market. But despite this, UST lost the peg.
When the UST price fell below $1, LFG purchased UST for $750 million. Although Terra has sold the BTCs they have in their reserves, the UST price is still far from $1. At the time of writing, the UST price is $0.55.
UST was Algorithmically Powered by LUNA
UST was powered by LUNA. However, the LUNA price plunge from $85 to $0.04 in just 3 days exacerbated Terra's stablecoin woes.