Binance, the world’s largest cryptocurrency exchange by trading volume, helped promote Terra’s Anchor yield scheme, which convinced many investors to join the UST stablecoin, which crashed earlier this month.
Before Binance crashed, it promoted UST and LUNA as “safe investments”
According to the report, the TerraUSD (UST) Anchor program was announced as a high-profit safe investment on Binance’s Telegram page. As a result, Binance has personally promoted UST and LUNA on Telegram. He described the plan as a “safe and happy opportunity” that his customers can participate in to earn 20 percent profit. The message transmitted through the official Telegram channel of the exchange was viewed more than 117,000 times.
The issue is not seen as Binance’s defense of the UST investment. The real problem; The inability of even the world’s largest cryptocurrency exchange to foresee future dangers. Alongside Binance’s UST investment ad last month, the exchange supported the Terra (LUNA) staking scheme last year, saying the investment is risk-free for investors. The following statements were also included in the statements made during this period:
We are currently analyzing how campaigns for projects like Luna are reviewed before they are announced.
Terra ecosystem collapse
Both LUNA and UST suffered huge losses which saw over $80 billion in valuations wiped in two weeks. This drop affected the entire altcoin market and disappointed a large investor base.
Binance represents individual investors
The collapse of the Terra ecosystem has affected many investors, including Binance. Binance, which invested $3 million in the project and purchased 15 million LUNA in 2019, now owns only $3,000 worth of LUNA. In the meantime, as we reported on Kriptokoin.com, Binance CEO harshly criticized the Terra team shortly after the collapse and made calls for small investors to be relieved. Terra, on the other hand, wants to reward everyone at the same time. On May 27, 2022, the company’s plan to build a new Blockchain and new token appears to have been approved, and new tokens will be distributed to investors via airdrop.
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