Focused on bolstering Avalanche's ecosystem, the Foundation is eyeing a significant buy-back of AVAX tokens once sold to Luna Foundation Guard in the earlier part of 2022.
Avalanche seeks legal clearance to withdraw AVAX tokens from the hold of Luna Foundation Guard, aiming to stabilize the token's market value.
An intricate agreement has been reached by the Avalanche Foundation to repurchase AVAX tokens, which were earlier sold to Luna Foundation Guard in April 2022, now pending a nod from the Bankruptcy Court.
This move aims to ensure compliance with the initial terms set forth, safeguarding the assets amidst ongoing...
— Avalanche Foundation 🔺 (@AvalancheFDN) October 11, 2024
Subject to judicial confirmation, the proposed buy-back seeks to forestall any contractual breaches by the LFG, the Avalanche Foundation disclosed. Another objective is to secure AVAX tokens from possible jeopardies associated with the bankruptcy of LFG.
A Valuable Buy?
The Foundation foresees that approval of this venture will augment their capability to support the ecosystem, although the precise court date remains undisclosed.
The Luna Foundation Guard, amidst its restructuring within Terraform Labs' broader insolvency issue stemming from Terra's collapse, continues to face the repercussions felt in the cryptocurrency markets.
This past June, Terraform Labs along with Do Kwon, its founder, faced a settlement of $4.5 billion with the SEC after allegations of unapproved securities sales and investor deceit.
Terraform Labs has outlined plans to cease operations of essential services unless external entities step in. The firm is exploring partnerships, while gradually winding down due to the bankruptcy complexities.
Confronting growing scrutiny over fund management, LFG has taken steps to bolster security by shifting its digital assets, including Bitcoin and AVAX, into direct custody solutions.
The AVAX tokens, integral to LFG's strategy for supporting its TerraUSD (UST) stablecoin, were acquired from the Avalanche Foundation in April 2022.
Originally valued at around $100 million, the Foundation's buy-back maneuver intends to insulate these AVAX tokens from potential insolvency-related sales.
The Drama Rages On
Post-collapse, Terraform Labs has shifted focus, unveiling a new version of LUNA while discarding UST. The network has been rejuvenated as Terra Classic (LUNC), and Terra 2.0 has been established.
AVAX Following news from the Avalanche Foundation, the token experienced a 7% surge, moving upwards from approximately $27.27 to $29.32, according to CoinGecko stats. It maintains a 2% rise within the past day's trading, peaking around $29.17.
Beyond token repurchase efforts, the Avalanche ecosystem is witnessing a surge in blockchain gaming, especially with the advent of 'Off The Grid,' a cyberpunk battle royale game gaining momentum among crypto enthusiasts.
Having recently launched on the Epic Games Store in an early access state, 'Off The Grid' briefly claimed a top spot. The game economy uses NFTs for trading in-game assets, with players able to discover unique 'Hexes' that serve as NFTs.
The gaming industry presents a vast avenue for blockchain expansion and integration.
The Avalanche network's Subnet facilitates seamless interactions within the game's framework, enhancing both transaction speed and scalability for a robust gaming experience.
In addition to the burgeoning gaming sector, financial titans have shown confidence in Avalanche. Its swift transaction times and low fees attract many in the financial arena seeking innovation.
Franklin Templeton has broadened its tokenized money market offering, FOBXX, by integrating it onto the Avalanche blockchain, reflecting the firm's strategy to enhance product accessibility and practicality.
By mid-October, FOBXX has emerged as the second-largest tokenized Treasury fund stateside, trailing only behind BlackRock's BUIDL fund.
