Chanpeng Zhao Says He Is Poor Again Following LUNA Crash

Binance CEO Chanpeng Zhao jokingly tweeted that he was poor again following the devastating crash of the LUNA

Chanpeng Zhao Says He Is Poor Again Following LUNA Crash
Zhao Says He Is Poor Again Following LUNA Crash

Chanpeng Zhao Poor Again, Binance Has 15 Million LUNA Tokens

Chanpeng Zhao, the founder of Binance joked that he is “poor again” after losing billions of dollars worth of cryptocurrency when the market crashed.

In a tweet on Monday, the Binance founder revealed that his company had 15 million LUNA tokens.

The price of the Terra (LUNA) cryptocurrency dropped by more than 99 percent in the past week, wiping out the fortunes of crypto investors.

Binance got the tokens in exchange for putting $3 million into Terra in 2018, which is the network that Luna is built on.

But Mr. Zhao still has a net worth of about $14.8 billion, which comes from his 70% share of Binance.

The price of TerrraUSD also went down a lot, just like Luna. Both Bitcoin and Ethereum (ETH) kept trading near their 18-month lows.

Fear And Greed Index Indicates Extreme Fear

The Crypto Fear & Greed Index was at its lowest level since March 2020, when fear of a pandemic caused a sell-off that drove the price of bitcoin below $5,000.

But as of Thursday, the price of Bitcoin is just below $30,000. This is a 56% drop from its all-time high in November.

Mr. Zhao had asked the Terra team to pay back retail investors first. “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.

Some people think that someone dumped $350 million worth of UST on purpose to make TerraUSD lose its value. This is one of the most popular conspiracy theories.

By doing this, the Luna Foundation Guard, which had saved up about $3.5 billion in bitcoin and other forms of cryptocurrency in the months before the crisis, would be forced to sell its bitcoin.

This would cause the price of bitcoin to fall, which could make it possible for people to take short positions on bitcoin.