Avalanche Foundation Wants To Repurchase LUNA’s AVAX Stack

In a recent agreement with Luna Foundation Guard (LFG), Avalanche Foundation has decided to reacquire all the AVAX tokens it sold to the former two years ago. Noteworthy, both firms went through with the transaction in April 2022 as part of the cooperation efforts to improve the foundation’s liquidity. LFG used the tokens purchased as reserve assets for its treasury. 

In light of the new plan, the Avalanche Foundation has approached the court to request approval for the repurchase process.

Avalanche Foundation Attempts to Salvage AVAX From Luna Bankruptcy Proceeding 

“This action ensures that LFG would not violate the original agreement’s restrictions on the tokens’ use and shields the tokens from the complexity of a bankruptcy trustee liquidation while returning 1.97M AVAX to the Foundation’s holdings,” the Foundation noted 

AVAX Surge by 15%, Reaching For $30

Amidst the wait for the court’s approval, the AVAX price saw a sizable surge of about 15%. Consequently, AVAX inched closer to $30, taking its market cap above $11.5 billion. It has recorded some fluctuations since then and has lost some of the profit made. At the time of this writing, AVAX traded at $28.48 after losing 2.42% of the gain from 24 hours ago.

Though also down by 2.26%, its market cap is still around $11.5 billion. AVAX trading volume is resting at $316.89 million, corresponding with an 18.44% dip in 1 day. The drop in trading volume suggests that traders need to gain more confidence in the potential of the cryptocurrency and its ecosystem. 

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