On April 8th, Do Kwon, the founder of Terra recently released a statement explaining their collaborative plans with Avalanche. after he bought $100m worth of AVAX.
The deal occurred via a treasury swap between AVAX and LUNA, bought by the LFG org; the Luna Foundation Guard. The LFG is there to bolster growth of the Terra platform and does all of the purchasing for the $UST stablecoin reserve.
Do Kwon stated that the reason for the massive accumulation of AVAX was to increase UST adoption inside the Avalanche ecosystem, diversify the reserve pool of UST away from only Bitcoin and create a long lasting partnership with the Avalanche ecosystem.
Kwon has already shown his love for the Avalanche ecosystem:
Not only will this purchase bolster TerraUSDs (UST) cross-chain usage; it will promote the two communities of Avalanche and Luna to engage, build and community with each other. Cross-chain engagement should now be made easy, as UST will become pegged to AVAX – something that is already occurring with Kwon’s massive recent buying of BTC for the reserve pool.
Ultimately, both ecosystems should be happy with this news. Major UST adoption on Avalanche will increase the scarcity of AVAX; hopefully meaning positive price action for the community and its investors.