- The effects of the explosion of the original Terra ecosystem continue to send shock waves into the crypto world.
Binance CEO Changpeng Zhao revealed that the company invested $3 million at the time in Terra as part of its Binance Labs investment in 2018.
In a recent interview with Fortune, Binance CEO said in return for this investment; He stated that he received the equivalent of approximately 50 million LUNA in cryptocurrencies held in a public and untouched cryptocurrency wallet.
“We invested in Terra as part of the Binance Labs investment in 2018 and it was a $3 million investment. We kept the 50 million Luna we received in return for the investment. Theoretically, we lost $1.6 billion in investment at the peak, but that’s okay.”
CZ: We invested in Terra as a part of a Binance Labs investment in 2018, and that was a $3 million investment. We just kept the coins that we got, 50 million Luna. Theoretically we lost like $1.6 billion of investment at the top, and it’s okay.
— Wu Blockchain (@WuBlockchain) June 3, 2022
The statement followed investors’ concerns about whether Binance was profiting from the collapse of the Terra ecosystem and whether CZ was communicating with Terra co-founder Do Kwon in light of the events that took place.
The collapse of the original Terra ecosystem created shock waves in the crypto world, and major cryptocurrency exchanges came under fire for listing stablecoins and altcoins that failed in the first place. Binance has also faced several criticisms after announcing its support for the new LUNA currency, Terra 2.0, and participating in its airdrop.
Block 1 of the new Terra blockchain, created to turn a new page after the collapse, was produced on May 28, followed by the LUNA airdrop.
Did Zhao meet with Do Kwon?
In the continuation of his explanation, Zhao said that there were some mistakes in the design of TerraUSD and Terra, which caused the Terra ecosystem to collapse.
While talking about Terraform Labs and its chief Kwon, the famous CEO claimed that he has never talked to Kwon directly, regardless of this incident, and detailed the issue as follows:
“I did not meet with him at the investment stage. I didn’t even have a Zoom meeting with him. I have never met him face to face. Our investment team did all the talking with him. We have a very fast internal review process. Me too, but I didn’t have to talk to him. Throughout this incident, our team spoke to him. Unfortunately he was quite slow to respond.”
Talking about Terra 2.0 and the revival plan, Zhao commented, “I have expressed my concerns or criticisms about some of the approaches taken in Do Kwon’s revival plan.”
“I think they made a snapshot move at a very early date. This is like effectively reversing many of the transactions on the blockchain, as well as most transactions made after the crash.”
Jump Crypto also talked about the Terra crash
Despite being one of the main sponsors of the project, Jump Crypto, the crypto-focused subsidiary of trading firm Jump Trading, also spoke about Terra’s decline recently.
According to the report released by the company, the panic-sell was triggered by a series of transactions in the USTw-3CRV curve pool. After TerraForm Labs (TFL) withdraws UST liquidity and places large UST sell orders in the pool, which should include the ratio of two wallets, 50:50 UST and 3CRV, the pool; He lost his balance and depth. The stabilizer was also put under a lot of pressure after that, due to the massive releases from Anchor Protocol.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.