Binance CEO Changpeng Zhao announced via Twitter that Binance has not invested $300 million in Terra (LUNA). Responded to Larry Cermak’s comment that the exchange is leading the Terra seed investment round in 2019 and 2021. Larry Cermak also hinted that Binance has invested $300 million. Responding to the allegations, Binance CEO also requested more transparency from the team at LUNA, particularly regarding on-chain transactions. Here are the details…
CZ’s statement on Binance’s Terra investment
Binance founder and CEO Changpeng Zhao, commonly known as CZ, has invested 300 million dollars in the crypto exchange Terra project. He denied allegations that he had invested in dollars. CZ’s statement regarding Binance’s early-stage involvement in Terra came in the form of an eight-part tweet thread in which Binance revealed that it only invested $3 million in Terra in 2018. Changpeng Zhao was responding to a claim from The Block’s Larry Cermak that implied that CZ tweeted about the Terra legend as Binance led the seed rounds in 2019 and 2021. CZ tweeted:
Binance did not participate in the 2nd round of Luna’s fundraising event and we did not receive any UST. Binance Labs invested $3 million in Terra (layer-0 Blockchain) in 2018. UST was launched long after our initial investment. Binance Labs has invested in hundreds of different projects in the last 4 years. Some of these projects succeeded, while others did not. That is the nature of investing.
1/8 These past weeks have proven to be a watershed moment for the crypto industry. We have witnessed the rapid decline of a major project, which sent ripples across the industry, but also a new found resiliency in the market that did not exist during the last market downswing.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
CZ is not hopeful of the LUNA team’s plan
In addition to CZ’s denial allegations that Binance has invested $300 million in Terra, Binance CEO has requested more transparency from the team at Terra (LUNA). CZ stated that he was particularly concerned about the impact of the collapse of UST and LUNA on the Terra community, and used the following statements:
I address my personal question marks in my tweets. Minting new coins does not add value to the fork. Re-buying and incineration creates value. Also, funds are not something that the project team can have. I expect more transparency from the team on this matter. I hope the project and the team will recover.
