An allegation that Binance had committed $300 million in the Terra project has been disputed by CZ, the company’s founder and CEO.
This information was provided by CZ in an eight-part Twitter thread where he indicated that Binance had only invested $3 million in Terra at the time of the first investment. He stated:
We did not buy any UST or participate in the second round of Luna’s fundraising. A $3 million USD investment in Terra (the layer 0 blockchain) was made by Binance Labs in 2018. Our first investment in UST came far later than UST.
When Larry Cermak of TheBlockCrypto.com made the accusation that CZ was tweeting about the Terra issue since Binance had led its seed rounds in 2019 and 2021, Mr. Zhao said, “It’s not true.” According to CoinDesk and Jump Crypto, the cryptocurrency exchanges spent $300 million each
The views of Larry Cermak may be seen in this Tweet. You can see why CZ is so enamoured with LUNA in her tweets. Terra’s 2019 seed round was led by Binance, as was Terra’s 2021 seed round. With a four-year vest and a one-year cliff, they committed $300 million in the latest round that concluded six months ago (same amount as Jump).
CZ Wants Luna’s Team to Be More Transparent
In addition to CZ’s denial of Binance’s $300 million Terra investment, the CEO of Binance has sought additional openness from the Terra (LUNA) team, particularly in relation to on-chain transactions. The fall of UST and LUNA alarmed CZ because of the potential consequences for the Terran population. He stated:
The Terra community has been on our minds the past several days, and we’ve done all we could to provide a hand. I’m only pointing out what I’ve come to believe are the possible snags in the system in my tweets. Forking and minting don’t add value. In order to buy back or burn, you’ll need money. Funds that the project’s crew may not have access to
I’d want to see more openness from them in this area. More, please! Including the txids of all the money’ particular on-chain transactions. Relying on the findings of a third party is neither adequate nor reliable. This should have been the first step.
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