The amount of Luna worth $1.6 billion before CZ’s de-peg is now only $3000 left

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2022-05-18 02:52:40

Before the wave of demands to announce the relationship between Binance and Terra, on the afternoon of May 16, Changpeng Zhao (CZ), CEO of Binance provided all the information to be “transparent” with the community.

The fact that CZ has repeatedly mentioned LUNA – UST in the past few days has made many people question whether there is a story behind, when Binance is known as an investor in Terra since 2018. According to documents Fundraising by Terraform Labs, this unit announced that Binance also participated in a seed round with $ 32 million in 2019 and a $ 1 billion funding round of LFG in early 2022.

The tweet announced the amount of Luna tokens that Binance is holding

With the announcements from CZ, Binance only made a 3 million USD investment in Terra in 2018 and received 15 million LUNA tokens. At the peak price at the beginning of April 2022, the above tokens were 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. Until now, the value of Binance’s LUNA tokens 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. CZ also provides additional wallet addresses to validate this information:

In the same paragraph, CZ wants Terra to focus on protecting the interests of retail investors first and be ready to be the last to receive compensation if that happens. The CEO affirmed that in case the project does not have enough money, Binance is ready to “remove debt”. This is a proposal that is also supported by Ethereum founder Vitalik Buterin.

CZ advocates protecting the interests of retail investors first

See also: The series of events of the collapse of the Terra . ecosystem

Since the collapse of the Terra ecosystem, the CEO of Binance has abandoned his rare neutrality and criticized Terraform Labs after the collapse of the Terra ecosystem. He thinks that the development team has handled the crisis too badly, even “giving up” when releasing a huge amount of LUNA to the market, causing this currency to have hyperinflation. 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 to hard fork the blockchain and brought it back before the first UST de-peg on May 8, CZ considered this a failure, because it is possible to bring the blockchain to the past but will not how to restore its value to that time.

Despite objections from Vitalik Bterin and CZ, Terra’s founder, Do Kwon continued to publish a new hard fork proposal. If passed, it would set a model precedent for UST-like stablecoins like USN and USDD to follow.

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