The Binance exchange didn’t sell its 15.4 million LUNA tokens and was previously worth $1.6 billion but now they are worth only $2461 so let’s read more today in our latest Binance news.
The CEO Changpeng Zhao said the Binance exchange didn’t sell the LUNA holdings that it received in return for a $3 million investment made in the Terra ecosystem back in 2018. Binance’s holdings in the Terra blockchain governance token were worth only $1.6 billion at one point. Now it is worth just $2461 and sits in the wallet that It was sent to, meaning it was never moved or sold. The wallet holds 3.4 million LUNA and staked the rest.
1/5. Some interesting updates, full transparency and lead to protect users:
As it turns out, most UST pairs were 0 fee to begin with. (I didn't know that, our team had to tell me.) So, not much UST there.
We do have… https://t.co/ihxbHzwmK5
— CZ 🔶 Binance (@cz_binance) May 16, 2022
The 12 million TerraUSD stablecoin was paid out as a reward from the 8 million LUNA that binance staked with Orion. Money and another 4 million LUNA the companies staked with the Staked protocol and both transactions took place on July 2021. after the tumulus week that started with UST losing the dollar peg, the Terra blockchain was halted twice to reduce the damage. The chain resumed and UST is trading at $0.10 as per COinMarketCap UST is worth $1.4 million with the Terra founder Do-Kwon making headlines for months after he purchased millions worth of BTC to the reserve backing the stablecoin.
Before this, the stabelcoin maintained the peg in a unique mint-and-burn mechanism in tandem with the LUNA token so each time UST dropped below $1 users could buy the discounted UST and swap it for $1 LUNA flipping the LUNA for a smaller profit on the open market. Besides a dollar-pegged stablecoin, Terra offered most other world currencies including EUR, pound, and yen. Binance wrote:
“And this is exactly why Terra is not just another stablecoin, but a better payment network using a price-stable digital currency to complement both existing fiat and cryptocurrencies, retaining all the censorship resistance of Bitcoin, and making it viable for use in everyday transactions.”
Since UST lost its 1:1 peg with the dollar, the crypto exchange was quite critical of the way the team handled the situation. Zhao wrote that he is quite disappointed with how LUNA’s incident was handled by the Terra team, saying that they were quite unresponsive after halting the network. Later that day, after warning that it will need to delist UST and LUNA, Binance pulled them from the platform.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]