Smart contract blockchain Avalanche has announced that Luna Foundation Guard has disclosed no plans for the 2 million AVAX tokens in its treasury, amid concerns about the impact.
The remarks, made through a tweet, add that the Avalanche foundation was ready to collaborate with the LFG for an ideal trading strategy in the sale of the reserves.
The market value of the AVAX tokens in question is $60 million, with the current price of AVAX tokens around $30 per token. The holding is the second largest reserve in the LFG’s $240 million treasury.
Avalanche says the announcement aims to inform the community, speculating on the fate of the AVAX reserves. The traders are inquiring about the possible impact that the sale of the tokens might have.
Avalanche Foundation received $100 million in LUNA from Terraform Labs and a similar amount in UST after acquiring $200 million in AVAX tokens.
1/ Some members of the Avalanche Community have inquired about details around the $AVAX reserves that the Luna Foundation Guard and Terraform Labs hold.— Avalanche 🔺 (@avalancheavax) May 19, 2022
Tl;dr: the AVAX is currently immobilized. Below is a transparency report 👇