CEO of Binance Changpeng Zhao says that his firm initially invested $3 million within the much-hyped Terra LUNA/USD challenge in 2018. In return, Binance obtained round 50 million LUNA.
However in a latest Twitter put up, he indicated that Binance in the end misplaced $1.6 billion in its Terra funding.
CZ: We invested in Terra as part of a Binance Labs funding in 2018, and that was a $3 million funding. We simply stored the cash that we bought, 50 million Luna. Theoretically we misplaced like $1.6 billion of funding on the prime, and it’s okay.
— Wu Blockchain (@WuBlockchain) June 3, 2022
Zhao’s tweet comes amid rumors of Binance doubtlessly profiting from the Terra ecosystem’s demise. There are additionally questions on whether or not the Binance CEO communicated with Terra co-founder Do Kwon throughout the mega crypto disaster.
Binance was additionally criticized after asserting help for Terra 2.0, the brand new LUNA forex.
In a latest interview, Zhao mentioned that there have been errors within the design of TerraUSD UST/USD and Terra, which resulted within the collapse of the Terra ecosystem.
Whereas discussing Terraform Labs and its chief Kwon, Zhao mentioned that he by no means spoke to Kwon instantly, not even to at the present time.
“In the course of the funding stage, I didn’t communicate to him. I by no means even had a Zoom name with him. I’ve by no means met him in particular person. Our funding staff did all of the speaking with him. We now have a really fast inner overview course of, which I am a part of, however I did not have to speak to him. All through this incident, our staff talked to him. Sadly, he was fairly sluggish in responding,” he mentioned.
Speaking about Terra 2.0 and the revival plan, Zhao mentioned, “On the revival plan by Do Kwon, I voiced issues or disagreements with among the taken approaches.”
“I feel they took a snapshot at a really early date. That is sort of reversing numerous the transactions on the blockchain, and in addition reversing most of the trades that had been finished after the crash,” he added.
Picture courtesy: Binance