The collapse of the Terra ecosystem has shaken the crypto market as the price of LUNA cryptocurrency plummets to the dust of ever the top 5 cryptocurrencies by market cap. However, amid all the ongoing drama, rumors surfaced on Twitter that crypto exchange Binance was one of the major investors in the Terra LUNA ecosystem.

Binance CEO Changpeng Zhao has come forward to clear the air about the same. In his recent thread on Twitter, CZ wrote

“First, I need to address the falsehoods circulating in crypto Twitter. Binance did not participate in the 2nd round of Luna’s fundraising, nor did we acquire UST. Binance Labs invested $3 million USD in Terra (the layer 0 blockchain) UST in 2018 came much later after our initial investment”.

Furthermore, Zhao said that Binance has invested in several crypto projects over the past four years. Some have performed better, while others have turned to dust. “That’s how investments work,” explains CZ.

CZ asks what Terra is doing about its Bitcoin reserves

Since the collapse of the Terra ecosystem, some market players have suggested ways to recover from this situation. One of the last proposals was to hardfork Terra 2.0, take a snapshot of companies before the collapse started, and provide LUNA holders with new LUNA 2.0.

In response to this, CZ . has said: “This will not work. Forking does not give the new fork any value. That’s wishful thinking. One cannot undo all trades from an old snapshot, both on-chain and off-chain (exchanges).

He further wondered what Terra is doing with all of his Bitcoin reserves intended to protect the UST dollar peg. “Shouldn’t those BTC ALL be used to buy back UST first?” he asked. In his latest thread, Binance CEO also mentions:

Over the past few days, we’ve worked hard to support the Terra community. In my tweets, I’m simply pointing out the potential issues as far as I understand. Coins, forks, don’t create value. Buy back, burn it, but it takes money. Funds that the project team may not have. In that regard, I would like to see more transparency from them.

Bhushan is a fintech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

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