Binance CEO CZ reminded what happened in the cryptocurrency market today last year. He said there are lessons that can be drawn from the 2 coins that caused the market crash.
Binance CEO assesses what happened in May 2022
Terra (LUNA) set the ATH level of $119.2 on April 5 last year. In the same month, it rallied more than 20%, independent of the market, several times. It has become one of the permanent members of the top 10 cryptocurrencies list.
As of May 7, signs of capital flight from the UST turned into a death spiral with new allegations about founder Do Kwon emerging on May 11. Since that date, the LUNA price has dropped 96% in one day to below $0.10. Later, the Terra network returned to the market with an airdrop event on May 28.
Binance CZ reminded on Twitter that the UST/LUNA collapse wiped $40 billion from the market today. Bitcoin (BTC) price tumbled from $28,000 to $19,000 after the crisis. Binance CEO says what happened is a lesson.
One follower confirmed, “One of the lessons I learned was to never trade emotionally and be very strategic when trading.”
https://twitter.com/DaCryptoAgency/status/165651639991180832
Terra report from Binance CEO
The LUNA crash occurred exactly one year ago. Binance CEO CZ draws from the incident, emphasizing transparency and user protection. He also revealed that Binance will enable the Terra project team to primarily pay its individual users. This event illustrates the risks in the cryptocurrency market and the need to protect investors.
Meanwhile, the Terra crash also eroded Binance’s UST and LUNA reserves. In a tweet last year, CZ said, “Binance received 15,000,000 LUNA as part of the original investment ($3 million). It delivered 560x returns at the peak. It’s still at the address we bought it at. It was never moved or sold,” he wrote.
4/ Now the important part.
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.
Binance (after a 5 min discussion) fully support this proposal. 👇https://t.co/QnMx8aZ09A
— CZ 🔶 Binance (@cz_binance) May 16, 2022
Binance was among the first exchanges to delist UST and LUNA when serious troubles began in the Terra ecosystem. CEO CZ remained in direct contact with aggrieved investors. He gave consideration to the idea of the Terra 2.0 launch.
Terra founder’s $176 million frozen
Terra CEO Do Kwon, who had deserted after the collapse of 2022, was arrested in Montenegro on March 23, 2023. In a heated development, a South Korean court granted prosecutors’ request to freeze Kwon’s local assets worth KRW 233.3 billion ($176 million).
Seoul prosecutor’s spokesman Kim Hee-kyung confirmed that the seized assets include Kwon’s private residence in Seoul, real estate, imported vehicles, securities deposited in Mirae Asset Securities, deposits at Woori Bank and cryptocurrency held on various exchanges.
