The Avalanche Foundation has negotiated an agreement to repurchase all AVAX tokens it previously sold to the Luna Foundation Guard a couple of years back.
Background
- The Luna Foundation Guard purchased $100 million worth of AVAX in April 2022
- This was done to boost its reserves
- The Avalanche Foundation has now come to terms with a deal to buy 1.97 million tokens back from LFG
- According to the team, this repurchase enhances the Foundation’s ability to support the ongoing growth and development within the Avalanche ecosystem
Why should you pay attention?
- At the current market price of $29.33, the value of the 1.97 million AVAX tokens is around $57.78 million
- This marks a 42% dip from the original $100 million
- The Foundation is now waiting for approval from the bankruptcy court
Who said what?
- The team announced,
"The Avalanche Foundation is now awaiting approval from the Bankruptcy Court"
- They added,
“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 1.97 million AVAX to the Foundation’s holdings”
In other related news
- The Avalanche ecosystem is back in the spotlight, thanks to the battle royale game Off the Grid
- As reported by blocmates, the battle royale game featuring AAA-level graphics and gameplay — featuring AAA — has an in-game economy built on an Avalanche subnet
