Original Terra ecosystem’s implosion sent shockwaves through crypto world
Changpeng Zhao, CEO of Binance, revealed that the company invested in Terra as part of a Binance Labs investment in 2018, worth $3 million at the time.
In a recent interview with Fortune, the Binance CEO stated that he received some LUNA coins in return, which were kept in a cryptocurrency wallet address made public and left untouched, at around 50 million LUNA.
The Binance CEO added, “But we haven’t made any money. Even today, theoretically, we’ve lost around $1.6 billion in investment at the top, and that’s fine.” profited from the demise of the Terra ecosystem, as well as if CZ communicated with Terra co-founder Do Kwon as events unfolded.
The original Terra ecosystem’s implosion sent shockwaves through the crypto world, with major cryptocurrency exchanges coming under fire for listing the failed stablecoin and token in the first place. Binance was criticized after announcing support for Terra 2.0, the new LUNA currency, and participating in its airdrop.
As previously reported by U.Today, Block 1 of the all-new Terra blockchain was produced on May 28, followed by the LUNA airdrop.
Jump Crypto speaks on Terra collapse
Despite being one of the project’s primary sponsors, Jump Crypto, the cryptocurrency-focused affiliate of trading firm Jump Trading, has now spoken out about Terra’s downfall.
According to the report, the selloff was triggered by a series of trades in the USTw-3CRV curve pool. After TerraForm Labs (TFL) withdrew UST liquidity and two wallets placed large UST sell orders in the pool, which was expected to contain a 50:50 ratio of UST and 3CRV, the pool lost its balance and depth. Due to the huge exits from the anchoring protocol, the ankle was also strained.
