The Avalanche Foundation announced via Twitter that it has reached an agreement to repurchase all AVAX tokens previously sold to the Luna Foundation Guard (LFG) before April 2022. The transaction is currently pending approval from the bankruptcy court. A total of 1.97 million AVAX tokens will be returned to the Avalanche Foundation for holding.

This significant development can positively impact Avalanche's market dynamics, as the repurchase will reduce the circulating supply of AVAX tokens and potentially lead to increased demand, driving up prices. Investors should keep a close eye on the bankruptcy court's decision, as a green light could trigger a bullish trend for AVAX.