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

[Flexystar]

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.

[Mehedi72]

Not only him but also there are others billionaire who's fund trun into zero because of luna. Even there are lot of people including my friends who became rich by holding with big amounts of luna and those persons are lost everything now.
Its good to see Binance CEO, Zhao requested luna team for compensation but reality is, luna team will never give any compensation to anyone as luna is already scam. So don't hope again with this token and its better to move on

[shinratensei_]

FYI if basically the real amounts of investment that already lost was around 3 millions USD. 1.6 billions were unrealized profit that already gained by binance but this company didn't wanna to cash out it.
Another platform like stable gain has been declaring to bankrupt and it was also facing so many legal actions from its investors.

There are so many parties starting to confirm about how much they have been loosing due to the terra luna failed project. Binance was the biggest exchange site and im sure that 3 millions UST meant nothing for binance.

[lornadane]

Not only him but also there are others billionaire who's fund trun into zero because of luna. Even there are lot of people including my friends who became rich by holding with big amounts of luna and those persons are lost everything now.
Its good to see Binance CEO, Zhao requested luna team for compensation but reality is, luna team will never give any compensation to anyone as luna is already scam. So don't hope again with this token and its better to move on

Yes many of them still hope for a repayment from Luna. I think it's very impossible with Luna's death, of course there is nothing more that we can hope for.
Hundreds of millions and even tens of millions of them were harmed by Luna in the blink of an eye, it was like a dream of Luna's project failure that made everyone confused by losing their funds.

[crwth]

I admire how the CEO of Binance is making statements that they want to make the users who are affected be protected or reimbursed first or something to that sense. It's not just them, but I read a lot of tweets that concern Luna and them losing millions of their money to it. It's just that volatile, you know.

Algo-based stable coins are probably not yet ready to be here because they have just been left to die, but Luna may have a fighting chance with what the Team Terra is proposing. Imagine being the leader of this, and many people have probably lost their life savings because of this.

I'm not sure if it will still be able to recover from this, though.


Has anybody thought of buying Luna despite what's happening?

[nimogsm]

I think he is absolutely calm because he will earn a lot more over time.In a business where there is such a lot of money, it is simply not possible without mistakes, a lot of people have lost their money and it will be a very expensive lesson for many that there is no stability and reliability in cryptocurrency.

[inanilujimi]

Maybe this is what is called a real diamond hand.
I applaud that CZ is more concerned with small investors first than having to be concerned with himself for compensation that doesn't necessarily exist.
but it must be remembered that there are also many people who make big profits when buying dip luna.

[Baofeng]

I think he is absolutely calm because he will earn a lot more over time.In a business where there is such a lot of money, it is simply not possible without mistakes, a lot of people have lost their money and it will be a very expensive lesson for many that there is no stability and reliability in cryptocurrency.

Of course he will, maybe he just want to magnify and let everyone know that he lost too. But for sure, he has a lot of investments that he is not telling us and he still worth billions.

And maybe he will also telling us subliminally that crypto investment is really a big risk, it's either you know how to mitigate the risk or you have plan B, (invest what you can afford to lose).

[Dr.Osh]

even so, it is clear that the CEO of Binance is disappointed with the project. The proof is, Binance had announced that it would delist LUNA and UST coins, but it was canceled with several conditions. despite his huge net worth, losing $1.6 billion would also have an impact on the company or himself. however, this happened not only to binance, but to most LUNA holdings before the dump occurred. I see that CZ wants to support the recovery of this project, but seeing that this project has reached the bottom, I think this even takes a long time and costs a lot of money

[Strongkored]

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.

Before the LUNA team gives compensation they are obliged to be transparent about what actually happened. But the next question whether they are able to compensate may be their compensation move by creating new coins and taking snapshots of LUNA holders

Has anybody thought of buying Luna despite what's happening?

I've never touched LUNA so far especially after what happened not interested in entering their market and what happened to luna gave a lesson that crypto is very risky so you have to understand each risk well

[Ararbermas]

even so, it is clear that the CEO of Binance is disappointed with the project. The proof is, Binance had announced that it would delist LUNA and UST coins, but it was canceled with several conditions. despite his huge net worth, losing $1.6 billion would also have an impact on the company or himself. however, this happened not only to binance, but to most LUNA holdings before the dump occurred. I see that CZ wants to support the recovery of this project, but seeing that this project has reached the bottom, I think this even takes a long time and costs a lot of money

i think it will not getting worse as well if binance didn't announced that luna would be listed, because surely it can make an impact.  Now they're disappointed?  Well, obviously a lot of people not only them, especially those who put all in and entire savings and now become literally poor again. Lol  and i know that what CZ said above is a message for everyone that we need to accept the results, not because he lost a large of money in it.

[Bitstar_coin]

I like the way cz open up to the public on Twitter about their investment in luna because some Twitter users already accusing cz of dumping their luna bag even when he did nothing of such. Cz shows his commitment to what he does, he didn't chicken out when the ship was sinking despite the huge amount. I doubt same can be said about the luna ceo Do Kwon, he must have probably sold his bag before the whole thing went down.

[sunsilk]

It's likely that the Terra foundation has given a huge chunk of Luna as they've became listed to Binance. CZ didn't saw that coming when the price plummets so fast and he probably thought that it will recover.

But looking at the perspective and recovery plan of Luna and UST, there's no hope as he said it from his mouth. Yeah, he might be poor again as a meme but he's still a billionaire.

[uelque]

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.

I don't think Terra can compensate binance users for what happened because the project team is surely in a big loss too plus they are having problems with how they can further save their coin. Plus there are millions of binance users. And I also don't think luna can ever recover from what happened, for me, there is a very high chance that it will just keep on going down no matter what the project team would do. It's much better for them to just start a new project and learn from what happened and try to make a coin much better than luna and then try to compensate luna investors somehow afterward if they can.

[kojektea]

this was an unexpected event, everyone would assume that LUNA is in the top 10 coinmarketcap positions, it has made us believe that investing in LUNA has very good potential for the future, even Binance CEO classmates are also affected, not only us who lost assets. It's really terrible, some people even put all their assets in LUNA then they can't withdraw it, but anyway regret can't be done, all we do is accept big losses from LUNA's investment and learn from this experience.

[X-ray]

Even CZ was calling this as the most stupid developers. They were taking a very big risk by betting into the new token that will be released soon. CZ was saying like that caused by binance was not the same like retail company, this company is having so many reserved funds and im sure that small amounts that have been loosing to the UST and LUNA meant nothing for binance. The different thing when it was like stablegain which was a small startup platforms that didn't have reserved funds and whole of team must be jailed as investors are filling legal action against this small startup

[RussianEnglishTranslation]

Terra was a scam from the start and CZ is holding the BTC reserves, they were never sold to support the peg. The silver lining is that anyone affected by Terra can claim a free airdrop from Candle Labs and there are bounties for the Luna devs from NEAR protocol and CandleLabsdotorg. I think BNB chain has a grants program too but Candle is the only one I am aware of that is giving out airdrops and bounties. I received mine over the weekend.

[asriloni]

Terra was a scam from the start and CZ is holding the BTC reserves,

The bitcoin was only sitting in the binance hotwallet and i guess terra ceo and binance cz were know everything about the funds. This is a very big question that have not answered yet. As you can see there are bunch of people that have been complaining about that. The problem is public can't know so well about the transparency. If you are seeing fatman and there are bunch of questions that being asked anytime. CEo of luna was refusing to answer about where is the fund through give the proof of transaction.
Do kwon was silently using the funds to buy lambo maybe.

[D ltr]

Has anybody thought of buying Luna despite what's happening?

will not buy back luna , i have sold my luna when the value fell 30% of my initial capital at least i didn't lose too much
I'm grateful I'm not like my other friends they haven't had time to sell their Luna

[diminizio]

Well, even though it's a big loss but something like this can't be predicted with certainty. We always think that LUNA, which is already in the top ten positions on coinmarketcap, will survive in the long term and can even grow well seeing the development of its projects which are in great demand. But everyone was shocked by the attack on LUNA which cost a lot of people, and it really won't be recovered in a short time, there is no other way but to accept it because we are prepared to invest with this kind of risk.