Binance Never Sold The 15 Million LUNA It Holds As Part Reward In Terra Protocol

Binance LUNA holding
  • Company held 15 million LUNA and 12 million UST prior the crash of Terra
  • At its peak, Binance LUNA was worth $1.6 billion
  • Binance LUNA holding is now worth $3000
  • The company agrees with the Terra proposal that compensates the poorest holders first
  • Would not mind being compensated last, if ever.

Even when they noticed that the Terra system was crashing, Binance never sold its holding of 15 million LUNA. This is the fund that the company received as part of their investment in the Terra protocol. According to an update from the company chief executive officer, Changpeng Zhao, who made the revelation in a May 16 Twitter post, Binance never moved or sold its 15 million LUNA as a part of the company’s policy to protect users.

$1.6 Billion LUNA At ATH

Users first before other considerations led to the company to leave its 15 million LUNA, a product of its $3 million investment in the company. The company did this, knowing that it would lose its investment to the about-to-plummet digital currency, considering that the native token of the Terra network gave ample signs that it was plunging below its $1 peg.

According to the Binance CEO, at its peak, the $3 million LUNA was worth $1.6 billion, garnering some 56o times return.

Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) investment. 560x return at peak. It still sits on the address we received at . Never moved or sold.

He also revealed that, just like LUNA, Binance held 12 million UST that the company gained from staking. This also was neither moved nor sold and still sits in the company’s wallet.

Supports Terra Proposal for Recovery

CZ further said that Binance is fully in support of the proposal that the Terra team put forward in its bid to compensate users. The proposal intends to repay the retail users who invested smaller amounts in LUNA before considering the large investors.

He said that the Binance team reached an agreement to back the proposal after a short deliberation on it. A section of the proposal released by the Terra team on May 11 said,

“The second way is to prioritize smaller wallets. People who had a couple thousand or more of UST deposited in Anchor. If Terra just focused on the “poorest” 99.6% of wallets, then they could make this gigantic group 100% whole. Yes, you read that right!”

Industry Support

Since its release, a number of industry leaders have shown support for it. In his reaction to the proposal, the Ethereum inventor, Vitalik Buterin said that he strongly supports the move, Buterin added that,

“Coordinated sympathy and relief for the average UST smallholder who got told something dumb about “20% interest rates on the US dollar” by an influencer, personal responsibility and SFYL for the wealthy.”

On his part, the Tron co-founder, Justin Sun, said he would commit $10 million in USDD to “the recovery of the bottom 236k UST holders”. He said that this is a token of the unity that exists in the industry.

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.

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