Changpeng Zhao (CZ), CEO of Binance, revealed that the company invested in Terra as part of a Binance Labs investment in 2018, which was worth $3 million at the time. Original Terra ecosystem’s implosion sent shockwaves through the crypto world.
Changpeng Zhao (CZ), CEO of Binance
Binance CEO Reveals $1.6 Billion Loss in Terra Investments
In a recent interview with Fortune, the Binance CEO stated that in return he received an amount of LUNA coins, held in public and unaffected crypto wallet address, for a price worth about 50 million LUNA.
The Binance CEO added, “But we didn’t make any money. Even today, theoretically we lost like $1.6 billion of investment at the top, and it’s okay”. The disclosure comes in the wake of recent concerns as investors queried whether Binance profited from the Terra ecosystem’s demise, as well as whether CZ communicated with Terra co-founder, Do Kwon, as events unfolded.
CZ: We invested in Terra as a part of a Binance Labs investment in 2018, and that was a $3 million investment. We just kept the coins that we got, 50 million Luna. Theoretically we lost like $1.6 billion of investment at the top, and it’s okay.
— Wu Blockchain (@WuBlockchain) June 3, 2022
The collapse of the original Terra ecosystem sent shockwaves through the crypto world, with major crypto exchanges coming under fire for listing failed stablecoins and tokens. right from the start. Binance was criticized after announcing support for Terra 2.0, the new LUNA currency, and participating in its airdrop. Block 1 of the brand new Terra blockchain went into production on May 28, followed by the LUNA airdrop.
Despite being one of the main sponsors of the project, Jump Crypto, the crypto-focused arm of trading firm Jump Trading, has now spoken out about Terra’s demise.
According to the report, the sell-off stemmed from a series of transactions in the USTw-3CRV curve group. After TerraForm Labs (TFL) withdrew UST liquidity and two wallets put large UST sell orders into the pool, meaning a 50:50 UST and 3CRV ratio, the pool lost balance and depth. Due to the large outflow from the Anchor Protocol, the peg is also under a great deal of strain.
Read more:
- Do Kwon’s Proposal To Relaunch Terra Blockchain Has Passed, South Korean Exchanges Massively Ignore LUNA 2.0
- Terraform Labs CEO Do Kwon Claimed The Closure Of Two Offices In South Korea Was Purely Coincidental