What happened? The Avalanche Foundation, a non-profit organization created to support the blockchain of the same name, has fully purchased native AVAX tokens from the team of Do Kwon's Terra blockchain, which collapsed in May 2022. In October, the bankruptcy court of the Terraform Labs developer company allowed the Avalanche Foundation to buy back 1.97 million AVAX for $52.8 million at the current rate.
What else is known? The NPO noted that the purchased coins will be used to implement grant and incubation programs, organize events and stimulate the community of users and developers of the Avalanche ecosystem.
In 2022, Terraform Labs founder Do Kwon launched the Luna Foundation Guard NPO to support the Terra blockchain. The organization has purchased over $10 billion worth of various cryptocurrencies, including AVAX and Bitcoin.
The assets were used as a strategic reserve for the algorithmic stablecoin UST. The mechanism for maintaining the stable value of UST included the burning and emission of LUNA tokens, also issued by Terraform Labs.
As part of the strategy, two transactions were completed, resulting in $100 million in AVAX being transferred to the Luna Foundation Guard balance sheet, and Avalanche Foundation receiving $200 million in UST and LUNA.
However, in May 2022, the value of both assets fell to near zero, causing tens of billions of dollars in losses to investors around the world. Before Kwon, regulators had charged him with fraud in several countries and investors were sued in class action lawsuits. Since then, the Avalanche Foundation has been working to buy back its native coins from the Terra team.
As for Avalanche, the project continues to evolve. Last month, it launched its own crypto credit card in partnership with Visa (NYSE:V), and in September, it launched a $40 million Retro9000 grant program to support ecosystem developers ahead of the release of Avalanche9000, the largest update since the mainnet launched in 2020. It will make it easier to launch Layer 1 (L1) networks in the Avalanche ecosystem.
At the same time, it became known that investment company ParaFi Capital was partially tokenizing its $1.2 billion venture fund with the help of Avalanche.
In August, the first Hong Kong-licensed crypto exchange, HashKey, whose parent company is valued at over $1 billion, received permission to trade AVAX in retail.
AVAX is ranked 16th overall by cryptocurrency market capitalization with $10.9 billion and is trading at $26.8, up 1.8% in 24 hours. The monthly growth was 0.9%, but since the beginning of the year, the asset has fallen in price by 30.5%.
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