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The founder of Avalanche revealed the loss of the project from investment in Terra
Due to the collapse of the Terra ecosystem, the non-profit organization Avalanche Foundation lost $ 60 million. Forbes was told about this by the founder of Avalanche and the head of Ava Labs Emin Gyun Sirer.
According to Sirer, Avalanche Foundation worked closely with Terraform Labs. He explained that the partnership of companies was aimed at increasing the intensity of two blockchains.
As part of the collaboration of Luna Foundation Guard (LFG) and TerRaform Labs (TFL) invested $ 200 million in Avax. The first acquired tokens during the OTC transaction for UST, the second – exchanged them for Luna cryptocurrency. Assets should have been used to stabilize the Terrausd course.
The head of AVA Labs noted that Avalanche Foundation also invested about $ 60 million at the current Avax exchange ecosystem at the Terra ecosystem.
Sirer also stated that TFL and LFG continue to hold AVAX:
“We talked with them, they did not drop AVAX even in difficult times, so at present it is the most valuable thing that they own. […] a significant percentage of tokens is practically blocked, so they cannot move them “.
Earlier, Avalanche Foundation specified the volume of AVAX Terra Terra:
- TFL acquired 1.09 million AVAX with an annual lock period;
- LFG bought 1.97 million AVAX for use in the reserve fund;
- These amounts are 0.5% and 0.9% of How exactly does the weekly bidding, respectively.
The founder of Avalanche emphasized that he does not regret investment in Terra. In his opinion, Ava Labs could bring a significant profit partnership with the project.
“We knew about the risks and thought:“ These guys understand how to manage [project], their team is prompt and talented, ”he explained.
According to Sirer, Terra’s collapse has more serious consequences for the cryptocurrency industry than an attack on The Dao. He compared the incident with the hacking of the MT exchange. Gox in 2014. The founder of Avalanche explained that the similarity lies in the negative impact of events on the industry.
Recall that Forbes called the collapse of Luna and UST “Fifth Reset” crypto.
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