Binance’s $1.6 Billion LUNA Investment Now Worth $3,000

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    Binance EO Changpeng Zhao has revealed notable information about their relationship with LUNA-UST, showing that the exchange has suffered a heavy loss of its investment.

    As reported by Coin68, CEO Changpeng Zhao of the world’s largest cryptocurrency exchange Binance has abandoned his rare neutrality stance and voiced criticism of Terraform Labs following the recent collapse of LUNA-UST.

    Specifically, CZ believes that the Terra team has handled the crisis too badly, even “give up” when releasing a terrible amount of LUNA to the market, making this currency “hyper-hyper-inflationary”. and multiply the price by a million times. Not stopping there, Terraform Labs’ “terrifying silence” both to the community and to Binance’s request for help made things worse.

    After Terra announced a new proposal for a blockchain hard fork and brought it back before the first UST de-peg on May 8, Mr. Changpeng Zhao continued to predict that the plan would fail anyway, because it is possible. bring the blockchain to the past, but it will be impossible to restore its value to that time.

    The fact that CZ constantly mentions the LUNA-UST story in the media has made many people question whether there is a story behind, when Binance is known as an investor in Terra since 2018. According to reports In a fundraising document from Terraform Labs, this unit claims that Binance also participated in a $32 million seed round in 2019 and a $1 billion LFG round in early 2022.

    Before the mixed wave on Twitter, on the afternoon of May 16, Binance CEO Changpeng Zhao provided all the information to be “transparent” with the community.

    Accordingly, the exchange only made a 3 million USD investment in Terra in 2018, receiving 15 million LUNA tokens. At the peak price in early April 2022, the token was worth up to 1.6 billion USD, bringing Binance 560 times more profit.

    Binance did not sell the coins and kept it in the provided wallet address, with 12 million LUNA staking, regardless of the price volatility and subsequent crash. At the exchange rate at the time of writing, the value of Binance’s LUNA spot is only about 3,000 USD.

    In addition, the exchange’s Terra wallet address has 12 million UST staking rewards, a high possibility from the Anchor lending protocol itself – the heart of the Terra ecosystem with the provision of 20% interest per year.

    Next, Mr. Changpeng Zhao announced that he would support a proposal that calls for Terraform Labs to compensate retail UST investors first, then Binance. The CEO affirmed that in case the project does not have enough money, the floor is ready to “remove debt”. This is a proposal that is also supported by Ethereum founder Vitalik Buterin, as Coin68 reported. The CEO also stated that after only 5 minutes of discussion, the Binance team accepted the proposal.

    When asked by users about Binance tracking the Bitcoin cash flow sent to the exchange by Luna Foundation Guard, Mr. Changpeng Zhao revealed that he had received the report from the exchange team, but will wait for Terra to reveal to the community. because it is their responsibility. He also commented that Terra was too slow in providing information.

    On the afternoon of May 16, Terraform Labs’ Luna Foundation Guard escrow fund announced that it had used all of the more than 3 billion USD in Bitcoin that they had accumulated over the past several months to save the UST price, but failed.

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