MARKET

Insider: LFG Project to Conduct $1 Billion Token Sale with Half-Price LUNA, Do Kwon Finally Speaks Out

share
Insider: LFG Project to Conduct $1 Billion Token Sale with Half-Price LUNA, Do Kwon Finally Speaks Out

After a sharp decoupling and recovery to the $0.9 level, UST once again dropped below $0.7 in the early hours of 5/11. Terra's founder, Do Kwon, who has been silent for a long time, finally spoke out on Twitter, stating that the UST recovery plan is nearing finalization and urging everyone to hold on.

Seeking $1 Billion in Funding

Earlier, The Block reported that Terra's support organization, LFG, is in negotiations with top-tier venture capitalists, market makers, and other institutions to raise $1 billion to support the UST market.

Sources claim that the negotiations are still ongoing, with institutions requesting to purchase LUNA tokens at a 50% discount to the current price, which will be locked up for two years and then linearly unlocked upon expiration.

Larry's Version

The Block's research director, Larry Cermak, presented his latest understanding as follows:

  • Jump, Celsius Jane St. have committed to the funding, while Alameda has not agreed yet.
  • The funding target is between $10 to $15 billion.
  • The tokens will be locked up for one year and then linearly unlocked monthly.
  • Approximately $7 billion has already been committed.

Larry emphasized that this is not the final agreement, the deal is not yet completed, and negotiations are still ongoing. The details of the institutions' conditions may also change, and LFG is expected to make an announcement within the next two days.

He also expressed surprise at the high level of interest these institutions have in LUNA. Apparently, he is not optimistic about UST's development, stating here:

The only reason people hold UST is for Anchor's 20% interest, and LFG cannot continue to sell LUNA at a 50% discount indefinitely to raise $1 billion.

Do Kwon's Response

After LFG's new policy on 5/9, there was no response. Terra's founder, Do Kwon, broke his silence. He stated that his silence was not intentional at this time, but a necessity to focus on finalizing the agreement. He thanked everyone for their support and stressed that the UST recovery plan is very close to being finalized.

https://twitter.com/stablekwon/status/1524164780189126657