Binance’s LUNA investment peaked at $1.6 billion and is now worth just $3,000.
Binance CEO Changpeng Zhao said the crypto exchange made significant paper gains on its investment in Luna but has now lost practically all of them.
Yet, due to last week’s collapse of Luna– and its related stablecoin TerraUSD (UST)– that investment has plummeted to just $3,400. Or, in Zhao’s words, “not much.”. Yet it’s not all bad news.
The exchange received around $10.3 million worth of UST in staking rewards (likely through Anchor, which offered up to 20% yield).
While that would be worth $74 million if UST were holding its peg to the dollar and not trading at its current value of $0.13, Binance is still upon its initial investment.
The algorithmic stablecoin UST broke from its peg to the US dollar last week, resulting in enormous losses for investors in both UST and Luna, whose price was meant to support UST’s peg.
Zhao added that the exchange would rather see retail customers compensated and backed a proposal for those who lost smaller amounts of Luna to be made whole.
Zhao also confirmed that the business had been in talks about investing $300 million in Luna in a recent $1 billion round, but the deal never closed.
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