The post Avalanche Foundation seeks court approval to repurchase AVAX from Terra’s Luna Foundation Guard appeared on BitcoinEthereumNews.com.

Avalanche Foundation has agreed with Luna Foundation Guard (LFG) to buy back all AVAX tokens it sold to LFG in April 2022 as part of the cooperation efforts between the two projects and to improve the foundation’s liquidity. According to the post on X, the repurchase plan is now awaiting court approval. If it goes through, it will ensure that LFG complies with the initial agreement when the tokens were sold to the organization. At the time, LFG was obliged to use the tokens it acquired as reserve assets for its treasury. However, the bankruptcy proceedings could force it to liquidate and dump the AVAX tokens, which the foundation wants to prevent. Avalanche Foundation said: “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.” Avalanche Foundation further explained that safeguarding the dumping of AVAX on the open market will also enable the foundation to support the network’s growth and development. Avalanche’s AVAX gains almost 10% in 24 hours Following the news that LFG will not dump almost 2 million AVAX tokens on the market, the token has seen a massive performance, gaining nearly 10% in the last 24 hours. It is one of the best-performing major cap cryptocurrencies in that period, with only SUI seeing higher gains among the top 20 cryptos by market cap. After today’s gains, AVAX is currently at $29.12, wiping off its struggles over the past few months. CoinMarketCap shows that the token has been in green for the past seven days, one month, and three months. However, it is down 30% year-to-date, highlighting how it has struggled in 2024. Avalanche AVAX Price Performance (Source: Tradingview) Although, its recent…

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Filed under: News - @ October 13, 2024 2:14 pm