$1.6 billion dollars turned to $2,200 - The Luna effect on Binance Assets

[wxa7115]

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Luna is like a lesson for us. But I took two lessons from Luna. One is that we shouldn't keep all our funds in 1. Like there is a proverb, don't keep all your eggs in one bucket. If that one bucket falls, your entire egg will be lost. This is the best example of this proverb. Second, regardless of how large the project is, you always keep us up to date on its progress and work so that we can understand its next possible destination. Though this is also just speculation. I hope you understand. This is just my opinion. Others' opinions might be different.

At the end all of this comes down to risk management, luna was a coin that was extremely popular and a lot of people just invested in the coin because other people were doing so, they could not tell you what made luna unique or why it had skyrocketed and held such a high price.

This combined greed and ignorance, which is always a very dangerous combination, and then then when the inevitable happened people were surprised, however if we see the promises that the developers of luna made you could easily see it was a scam and that this coin had no chance of surviving for the long term.

[Nazmul012]

Although he still has enough even he would earn more than what he lost but the fact is, i wonder that he also invested 1.6 billion with luna, thats a lot possibly 15% of his total assest! This is how people trusted luna but it has done bad to its user. I saw luna team has given new luna as forked but i laugh because that amount is thousands time lower as compensation than what people lost

[RussianEnglishTranslation]

It’s breath taking to see how Binance the worlds most popular crypto exchange had to suffer losses not in millions but billions of dollars!

Binance had an address where at the peak price Luna were sent adding up 15 million LUNA on binance. These were around 1.6 billion dollar worth before the month Luna dropped to almost cents.

Binance CEO, Zhao however still not worried much considering his net worth still stands at around $14 billion. 

In his tweet, he shares funny meme and says “Poor again”, with picture of terrified guy. Lolz.



I am not sure how Terra will help Binance, but CEO Zhao requested the project team to compensate the Binance users for this down turn.

Changpeng Zhao, the founder of cryptocurrency exchange Binance, tweeted a few days ago that he was “poor again” after losing billions of dollars in cryptocurrency following a market crash, which wiped out the fortunes of many investors. The exchange's assets in the cryptocurrency Luna fell to just $2,200 from $1.6 billion, at the token's peak price, a month before. In a tweet, Zhao claimed that Binance held 15 million Luna tokens, which the exchange had obtained in exchange for a $3 million investment in the Terra network, which Luna is founded on. The Luna tokens were “never moved or sold,” he added.

Luna's fall began when TerraUSD, its sister coin, lost its peg to the US dollar. The two tokens' prices are linked. When the price of TerraUSD dropped, investors raced to sell their holdings. The price of Luna was pulled down by the drop in TerraUSD.

Despite the crash and the fall in the price of Luna, Zhao has a net worth of around $14.9 billion, as of Sunday, according to Bloomberg. His estimated 70 percent stake in Binance accounts for the majority of his wealth, stated a Forbes report.

In another tweet, Zhao urged the Terra team to make reimbursing its retail investors top priority. He wrote, “To lead by example on protecting users, Binance will let this go and ask the Terra project team to compensate the retails users first, Binance last, if ever.”

Terra Luna has dropped 99.15 percent in the last few days, according to Binance data. It has a market cap of $924.99 million.

Daniel Shin and Do Kwon founded Terra Luna, a blockchain technology that uses fiat-pegged stablecoins, in January 2018. The token was first made accessible to investors in a private token sale in August 2018, raising a huge $32 million from investors including Binance, OKEx, and Huobi.

Zhao founded Binance, which has grown to become the world's largest cryptocurrency exchange by daily trading volumes. Binance's daily average volume is over two billion, with over 14 lakh transactions per second. It provides cryptocurrency trading help 24 hours a day, 7 days a week.

Luna was a scam from the start and Binance was in on it. The billions of dollars that were supposed to support the UST peg were never actually sold, they are in CZ's wallet . I rarely ever use exchanges anymore. Since DeFi exists, I can trade on most L1 chains. In fact, here's a little alpha. People are just trading NFTs on HBAR and ICP right now but DeFi DApps should be released this summer. Both chains should see a pump.

[JahriMeayer]

People had hope when terra team announced they have recovery plan. After that Fork token has distributed already, even i also received new token which is worth some dollars. It doesn't make sense how terra use the way of to fulfill their recovery plan for their user as they announced. They have given so call fork token and they think people Will support them again, that's ridiculous.

[trendcoin]

In 2018, CZ invested $3 million in Luna. (https://finder.terra.money/mainnet/address/terra19scdgmvhj5rl7f66n06z5pescf0gmeysw6pjrz). in my opinion, He has already received his reward. But he still missed an excellent profit opportunity. He watched $1.6 billion become zero in a few days. CZ's explanation is here: https://twitter.com/cz_binance/status/1526129837299093506 I don't believe his explanation. Surely he got a profit. Changpeng Zhao may have used a backdoor tactic. :) I don't think it's realistic that Changpeng Zhao hasn't earned any money. :)