Binance CEO CZ Clears Air On Their Investment In Terra LUNA

The collapse of the Terra ecosystem has shaken the crypto market as the value of LUNA cryptocurrency falls to mud from as soon as being the top-5 cryptocurrencies by market cap. However, amid all the continued drama, some rumors floated on Twitter that crypto trade Binance was one of many massive buyers within the Terra LUNA ecosystem.

Binance CEO Changpeng Zhao has come ahead to clear the air relating to the identical. In his latest thread on Twitter, CZ wrote:

“First, I need to address falsehoods circulating in crypto Twitter. Binance did not participate in the 2nd round of Luna’s fund raising nor did we acquire any UST. Binance Labs invested $3m USD in Terra (the layer 0 blockchain) in 2018. UST came much later after our initial investment”.

Furthermore, Zhao stated that Binance has invested in a number of crypto initiatives over the past 4 years. Some have outperformed whereas some have gone to mud. “That’s how investments work,” explains CZ.

CZ Asks What is Terra Doing About Its Bitcoin Reserves

Ever for the reason that collapse of the Terra ecosystem, some market gamers have been suggesting methods to get better from this example. One of the most recent proposals was to hardfork Terra 2.0, create a snapshot of holdings earlier than the collapse triggered, and supply LUNA holders with new LUNA 2.0.

Responding to this, CZ said: “This won’t work. Forking does not give the new fork any value. That’s wishful thinking. One cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges)”.

He additional questioned what’s Terra doing about all its Bitcoin reserves that had been meant to guard the UST’s greenback peg. “Shouldn’t those BTC be ALL used to buy back UST first?” he requested. In his newest thread, the Binance CEO additionally mentions:

The previous couple of days, we tried onerous to assist the Terra group. In my tweets, I’m merely stating the potential points from my understanding. Minting, forking, don’t create worth. Buying again, burning does, however requires funds. Funds that the challenge staff could not have. In this regard, I wish to see extra transparency from them.

Bhushan is a FinTech fanatic and holds a great aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary abilities.

The offered content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.