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Binance Kept Terra Investment Through 2022 UST Collapse, CZ Says

Changpeng Zhao said Binance’s 2018 Terra investment rose from about $3 million to roughly $1.6 billion before the 2022 collapse, and the exchange discussed reducing LUNA exposure but did not sell.

LUNC

Summary

Changpeng Zhao said Binance’s Terra investment increased from about $3 million in 2018 to roughly $1.6 billion before Terra’s 2022 collapse. He stated that Binance discussed reducing its LUNA exposure during 2022 but chose not to sell, citing concerns about worsening market panic and avoiding the appearance of exiting before retail investors. Zhao added that Binance still holds part of the tokens.

Terms & Concepts
  • LUNA: The native token of the original Terra blockchain, used within its ecosystem before the network’s collapse and restructuring in 2022.
  • UST: An algorithmic stablecoin designed to maintain a price peg through market incentives rather than traditional cash reserves.
  • LUNC: The renamed token of Terra Classic, the original Terra blockchain that remained after the network’s fork.