Binance CEO Changpeng Zhao announced that the company invested $3 million at the time in Terra as part of its Binance Labs investment in 2018. Theoretically, they said they had a loss of $1.6 million, but that wasn’t an issue. Here are the details…
Binance CEO: We lost $1.6 million
In a recent interview with Fortune, Binance CEO exchanged about 50 million dollars held in a public and untouched cryptocurrency wallet. He stated that he received some LUNA coins that correspond to the coin. Announcing the matter, Blockchain researcher Wu Blockchain shared CZ’s comments in his tweet:
Binance CEO said they “didn’t make any money” from LUNAs. “Even today, we’ve theoretically lost $1.6 billion in investment at the top and that’s okay,” he added, following recent concerns that investors questioned whether Binance had. There was talk of the collapse of the Terra ecosystem and whether CZ was contacting Terra co-founder Do Kwon as events unfolded.
As we reported on Kriptokoin.com, the explosion of the original Terra ecosystem sent shockwaves in the cryptocurrency world, with major cryptocurrency exchanges receiving major criticism for listing the failed stablecoin and token in the first place. Binance was criticized after announcing its support for Terra 2.0, the new LUNA currency, and participating in its airdrop. As previously reported, block 1 of the brand new Terra Blockchain was produced on May 28, followed by the LUNA airdrop.
Jump Crypto talks about the Terra collapse
At this time, although he is one of the main sponsors of the project, trading firm Jump Trading Crypto-focused subsidiary Jump Crypto talked about Terra’s decline. The sales were triggered by a series of transactions in the USTw-3CRV Curve pool, according to the report, which lists what is known about what triggered the crash. After TerraForm Labs (TFL) pulled UST liquidity and placed large UST sell orders in the pool, which should include the two wallets, 50:50 UST and 3CRV ratio, the pool lost its balance and depth.
The stabilizer has also been put under a lot of pressure due to major releases from Anchor Protocol. Jump reported that “big exits” at the UST were found to depart from Anchor protocol late on Saturday night, May 7, and late Monday morning, May 9. The exits, which together forced the UST to meaningfully hold steady, were driven primarily by large depositors. In contrast, small depositors were found to increase their investment in Terra during these three days. Near Terra’s collapse, co-founder Do Kwon retweeted a post that echoed a similar theory about the incident.
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