Changpeng Zhao Provides Clarification on Binance's Investment in Collapsed Terra

　　Terra's ship bravely sailed but has now capsized due to a series of algorithm hacks that caused the blockchain network's native token LUNA to plummet to what many regard as an irreversible level.

　　With so many experts asking what is going on, Binance's Chief Executive Officer, Changpeng Zhao, has come out to clarify the trading platform's investments in the Terra ecosystem, seemingly in response to misleading accusations being circulated on Twitter.

　　Binance invested $3 million in Terra in 2018 when the project was dubbed a Layer 0 blockchain, according to CZ, and the trading business did not invest in the protocol in its second financing round. CZ stated that Binance did not acquire UST, the network's algorithmic stablecoin that is no longer pegged to the US dollar.

　　“I need to correct misinformation circulating in crypto twitter,” Zhao remarked in the conversation, adding, “Binance did not participate in the second round of Luna's fund raising, nor did we acquire any UST.” In 2018, Binance Labs invested $3 million USD in Terra (the layer 0 blockchain). UST arrived significantly later than our first investment.

　　The CEO stated that the exchange has made hundreds of investments over the years, and although some have proven to be quite successful, others have fallen by the wayside.

　　Changpeng Zhao also supports the Terra ecosystem's validator's proposal to fork the blockchain and create Terra2 by capturing LUNA token holders' balances prior to the network's attack and subsequent market drop. According to CZ, “minting and forking do not produce value,” rather token burn and buyback do.

　　There are currently around 6.5 trillion LUNA tokens in circulation, and according to CZ, burning or buying back can be highly expensive. While CZ has pledged additional assistance beyond the relisting of LUNA/USDT spot trading quickly after the services were suspended, the CEO has sought openness and responsibility.

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