Changpeng Zhao, CEO of Binance, announced that the company then invested $3 million in Terra as part of its 2018 investment in Binance Labs. In theory, they said they were losing $1.6 million, but that wasn’t a problem. Here are the details…
Binance CEO: We lost $1.6 million
In a recent interview with Fortune, Binance CEO in exchange for a public and pristine cryptocurrency, he explained that he received some LUNA coins in his wallet totaling about 50 million coins. Blockchain researcher Wu Blockchain announced the matter and shared CZ’s comments in his tweet:
https://twitter.com/WuBlockchain/status /1532766910009311232
Binance CEO said they “didn’t make any money” from LUNAs. “Even today, we’ve theoretically lost $1.6 billion in investments at the top, and that’s okay,” he added, after investors recently questioned concerns over whether Binance had done so. There was talk of the collapse of the Terra ecosystem and whether CZ contacted Terra co-founder Do Kwon as events unfolded. As we reported on
Kriptokoin.com , the explosion of the original Terra ecosystem sent shockwaves through the cryptocurrency world, with major cryptocurrency exchanges heavily criticized for using the failed stablecoins and tokens in the first place. Binance has faced criticism 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 28th, followed by the LUNA Airdrop.
Jump Crypto talks about the collapse of Terra
Although he is one of the main sponsors of the project To At that time, Jump Crypto, the crypto-focused subsidiary of trading company Jump Trading, spoke about Terra’s demise. 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) withdrew UST liquidity and placed large UST sell orders in the pool intended to contain the two wallets, the 50:50 UST and 3CRV ratio, the pool lost balance and depth.
The Stabilizer has also come under a lot of pressure from major releases from Anchor Protocol. Jump reported that “big exits” on the UST late Saturday night, May 7, and late Monday morning, May 9, were found to deviate from the anchor protocol. The exits, which together forced the UST to hold its own meaningfully, were mainly driven by large depositors. In contrast, small depositors were found to increase their investment in Terra during these three days. Just prior to Terra’s collapse, co-founder Do Kwon retweeted a post that reflected a similar theory about the incident.