Cryptocurrency exchange Binance suffered significant losses as it held 15 million LUNA tokens, which, in a moment, costed around $1.6 billion. Binance initially invested $3 million in the Terra ecosystem back in 2018. What's more, the exchange is hodling all the assets, says Binance CEO Changpeng Zhao (CZ).
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2/ Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) invest. 560x return at peak. It still sits on the address we received at 👇. Never moved or sold.
— CZ 🔶 Binance (@cz_binance) May 16, 2022
Address:https://t.co/6HwTu6CCuB
In follow-up tweets, CZ added that the exchange will ask the Terra project team to compensate the retails users first and "Binance last, if ever." The Binance head also noted that the trading platform has approximately $12 million in UST from staking over time. These holding have also never being moved or sold, CZ reiterated.
At the same time, CZ also doubts that a hard fork of the Terra blockchain with a reversion of the network to the time before the collapse of LUNA and UST will work at all. Zhao believes that the new version of the blockchain is likely to be worthless because it won't give any value to the community.
As iHodl earlier reported, terraUSD (UST), an algorithmic stablecoin on the Terra blockchain, lost its $1 peg, dropping to $0.15. Amid price fluctuations, Terraform Labs, the company behind Terra, several times suspended blocks generation to prevent governance attacks following severe LUNA inflation and a significantly reduced cost of attack.
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