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Arca Pounces on UST Buying Opportunity After Stablecoin’s Collapse -Breaking

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© Reuters. Arca Pounces on UST Buying Opportunity After Stablecoin’s Collapse
    • Arca said Terra’s UST stablecoin will eventually regain its peg.
    • According to the firm, this is an excellent buying opportunity.
    • TRON DAO Reserve will raise the USDC/TUSD supply of TRON by $400M.

Crypto fund Arca is probably one of the many currently suffering considerable fallout after the collapse of the blockchain’s LUNA-powered stablecoin, UST.

This comes after the firm, which manages $500 million in assets, sent out a note on Tuesday telling its partners that it is certain that Terra’s UST stablecoin will eventually regain its peg. It concluded that it was an ideal time to buy.

Arca noted in its note that it also held an ad-hoc meeting of the investment and risk committee to address the present situation.

Monday night, UST fell to 63 cents and LUNA trades at $24.60.

Arca CEO, Rayne Steinberg, wrote to the investors on Tuesday saying that after analyzing the numbers “we felt, and continue to feel, that UST will ultimately maintain its peg and a number of attractive opportunities had become available.”

Steinberg elaborated on these so-called opportunities when he said that “[they were] able to purchase UST at a significant discount to par in the Digital Yield Fund (DYF) and then deposit with FTX who were paying 100% annual percentage yield (APY) given the buyer/seller imbalance during peak fear.”

Steinberg mentioned that Arca has been through many crises in the past and is not new to this particular one. Arca “welcomes these opportunities to be buyers when others are fearful.”

TRON founder Justin Sun announced that TRON’s TRON DAO Reserve would increase USDC and TUSD supplies by $400 Million ($200,000,000 each) in related news.

People’s opinions on the decision seem to be mostly positive. A user suggested that this decision might be something that crypto ecosystem could learn from.

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