Binance CEO Says LUNA Collapse Left Him 'Poor Again'
Big and small investors lost billions in Terra's meltdown. The collapse of the Terra network cost investors $40 billion. Binance's Changpeng Zhao says it never sold its 15 million LUNA, which was worth $1.6 billion at its peak. If you've lost money, it might be a good time to take stock and make a new plan.
The collapse of Terra's LUNA and TerraUSD (UST) cost investors over $40 billion and shocked many in the industry. As the crypto community digests the impact of the network's implosion, some insiders are saying "I told you so" while others rue their support for the once-popular crypto.
For example, Galaxy Digital CEO Mike Novogratz, who was so enamored with Terra he got a LUNA wolf tattoo, told shareholders, "My tattoo will be a constant reminder that venture investing requires humility." He added, "It was a big idea that failed."
Binance CEO Changpeng Zhao (also known as CZ) said the company had 15 million LUNA, which was worth $1.6 billion at the token's peak. His "poor again" tweet may not sit well with retail investors who lost significant amounts of their savings. CZ may have lost money, but Bloomberg estimates his net worth is over $15 billion, ranking him No. 108 in the Bloomberg Billionaires Index.
Plus, it's easy to look at what something would have been worth if you'd sold at the peak. In reality, it's extremely difficult to time the market and sell at the highest point. It's more accurate to think that Binance lost $3 million -- that was the amount it originally invested in Terra. Binance received its LUNA tokens as part of its investment deal and it never sold them.
Binance pushes for LUNA to reimburse small investors first
Binance is one of the biggest cryptocurrency exchanges in the world. The exchange came under fire for suspending withdrawals of LUNA and UST early on in the collapse. It said this was due to network congestion, but the move frustrated many investors.
Since then, CZ has pushed a message of transparency and user protection. "To lead by example on PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate the retail users first, Binance last, if ever," he tweeted.