The founder of the billionaire crypto platform, Binance, says he is “again” poor after his Luna holding – which used to be worth $1.6 billion – has crashed and is now only worth $2,200.
In a tweet on Monday, Zhao said that Binance, the world’s largest cryptobourse, has 15 million luna tokens. Binance received these tokens in exchange for an investment of $3 million in 2018 in the Terra space network.
According to Zhao, his luna tokens were “never transferred or sold” on Monday.
Binance luna was worth $1.6 billion in early April, when the token reached its highest price. However, its recent collapse this week caused the amount to fall to about $2,200. The currency traded at around $0.0001468 on Thursday.
Luna’s value has fallen sharply in the last two weeks.
The blast began when her sister token TerraUSD lost the US dollar two weeks ago. The values of the two tokens are linked.
When the price of TerraUSD fell, investors invested their assets in this token in a scenario similar to a bank run. The fall of TerraUSD once again pulled the price of luna down.
The free fall of the two tokens is said to wipe out more than $50 billion in paper, Insider said.
On Monday, Zhao urged the Terra team to pay its small investors first. “In order for Binance to set an example of USER PROTECTION, it will leave it at that and ask the Terra project team to pay retail users first and Binance last if possible,” he wrote on Twitter.