(Bloomberg) —
The backers of the TerraUSD algorithmic stablecoin are trying to raise about $1.5 billion to shore up the token after it crashed from its dollar peg, according to Kumar Gaurav, the founder and chief executive of crypto liquidity provider Cashaa.
Investors in the proposed deal will be able to buy the Luna coin at a 50% discount to the spot price, Gaurav said in an interview. They’ll be subject to a one-year lockup and a monthly “linear vest” over 12 months, he added. Luna has tumbled 87% over the past 24 hours to $3.85, according to CoinMarketCap data.
Cashaa is among prospective investors that received the proposal from the Luna Foundation Guard, Gaurav said, adding that his firm won’t participate. The LFG didn’t immediately respond to requests for comment.
TerraUSD plunged from its intended 1-to-1 peg to the dollar on Wednesday to trade at around 50 cents.
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