CZ has clarified that Binance did not invest $300 million in Terra (LUNA)
Changpeng Zhao (CZ), CEO at Binance, shared his two cents on what happened to Terra (LUNA) and cleared up some misconceptions.
2/ First, I need to address falsehoods circulating in crypto twitter.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
CZ debunks rumors that Binance invested $300m in Terra (LUNA)
CZ said he expects more transparency from Luna’s team following last week’s UST-LUNA fiasco. Last week saw a top cryptocurrency go to zero in just a few days.
UST – Terra’s algorithmic stablecoin – lost its peg and fell to around $0.225. The protocol works has created a huge arbitrage opportunity as users can burn 1 UST and get $1 worth of LUNA.
As long as UST stayed below its anchor, traders could print LUNA and sell it on the open market in a loop that saw 6.5 trillion coins go into circulation in a matter of days.
Naturally, this brought the price of LUNA down to $0 as most exchanges delisted the asset.
One of these exchanges is Binance. Now, CZ has taken it to Twitter to clarify his stance on the matter.
CZ said that Binance didn’t participate in the second round of funding for Luna, and they didn’t acquire any UST. Binance Labs – the company’s investment arm – backed Terra with $3 million back in 2018 before UST was even a thing. He also clarified that “the last few days, we tried hard to support the Terra community. in My tweets, I am simply pointing out the potential issues from my understanding.”
In this regard, I would like to see more transparency from them (read: Luna team). Much more! Including specific on-chain transactions of all the funds. Relying on 3rd party analysis is not sufficient or accurate. This is the first thing that should have happened.
- 80,000 Units Of Bitcoin Were Reportedly Sent To Gemini And Binance
- GAM Investments Dispels Rumors They Will Invest $3 Billion To Help LUNA/ST Recovery Efforts
- The Terra Dapp Expo, Slated For June 9 And 10 In Austin, Texas, Has Been Canceled