The post Avalanche Foundation to Reacquire 1.97M AVAX Tokens from LFG Deal appeared on BitcoinEthereumNews.com.

The Avalanche Foundation plans to repurchase 1.97 million AVAX tokens from Luna Foundation, pending bankruptcy court approval. Avalanche’s strategic token repurchase reflects its commitment to stability and ecosystem growth amid ongoing developments. Strategically, the Avalanche Foundation has decided to repurchase 1.97 million AVAX tokens sold to the Luna Foundation Guard (LFG) from April 2022. LFG is in bankruptcy, and this choice is crucial at this moment. Currently under review by the bankruptcy court, the repurchase agreement is a required step to guarantee adherence to financial and legal norms. This action is meant to protect the AVAX tokens from becoming trapped in liquidation procedures resulting from LFG’s financial problems. The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG) in April 2022, which is now awaiting approval from the Bankruptcy Court. This action ensures that LFG would not violate the original… — Avalanche Foundation 🔺 (@AvalancheFDN) October 11, 2024 Avalanche Strategic Repurchase to Secure Market Stability  Originally sold to LFG, the AVAX tokens were part of a larger plan meant to improve liquidity and deepen crypto space cooperation. But the bankruptcy scenario has added complications, so Avalanche Foundation must acquire the tokens to minimize any possible bad effects on the market. Token returns to Avalanche’s treasury once the court accepts the transaction will help to lower the circulating supply. The choice to repurchase the tokens also fits the long-term objectives of the foundation in preserving asset stability and facilitating the expansion of the Avalanche ecology. The basis hopes to increase investor confidence and guarantee that its strategic activities are well-funded by regaining ownership over the AVAX tokens. Looking ahead, especially as Avalanche keeps drawing fresh alliances and increasing its influence, the repurchase will confirm its position in the blockchain space. The…

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Filed under: News - @ October 12, 2024 6:09 am