Amid the turmoil still circling the Terra (LUNA) ecosystem, Binance CEO Changpeng Zhao, aka CZ, revealed the exchange’s holdings in LUNA and stablecoin UST. On his Twitter account, CZ revealed that the platform has 15 million LUNA tokens.
At the time of the cryptocurrency’s all-time high in April of this year, when each LUNA was above $115, Binance’s cryptocurrency amount was worth $1.6 billion, according to CZ.
Now, with the coin worth virtually nothing, or $0.000132, the 15 million LUNA is worth less than $2,000.
2/ Binance received 15,000,000 LUNA (at peak worth $1.6 billion USD, now not much) as part of the original ($3m) invest. 560x return at peak. It still sits on the address we received at 👇. Never moved or sold.— CZ 🔶 Binance (@cz_binance) May 16, 2022
Binance Revealed Holdings in UST and LUNA
The revelation came after CZ consulted with Binance about possible possessions of the Terra ecosystem stablecoin, TerraUSD. According to him, after reading some comments on Twitter, he decided to ask the team if Binance had any UST.
“I don’t have access to our admin backend, for security reasons. So I always have to ask someone for information. I just asked now,” she clarified.
It was then that he discovered that Binance has 15 million LUNA and also a large amount of UST:
“At this same address, we have about $12,000,000 of UST staking over time (not long). They were never moved or sold either.” he said.
Binance ‘gives up’ on behalf of small investors
Next, CZ highlighted what he called “the important part”. To set an example when it comes to “user protection”, Binance has practically given up its positions in LUNA and UST.
“Binance will put that aside and ask the Terra project team to compensate retail users first. And Binance last, if ever.”
Furthermore, the exchange’s CEO stated that the company fully supports the proposal put forward by investor Persian Capital. According to the proposal released on May 13, the Terra team must give priority to “smaller” investors:
“The second way is to prioritize smaller wallets. People who had a couple thousand or more of UST deposited in Anchor. If Terra just focussed on the “poorest” 99.6% of wallets, then they could make this gigantic group 100% whole. Yes, you read that right!” tweeted Persian Capital.
As the investor explained, prioritizing the 99.6% of the base, the Terra network could literally return every dollar invested by the poorest 99.6% that hold the majority of the UST.
According to him, this is the fairest proposal, after all, ‘poor’ people need more money.