The Binance platform has up to 15 million Luna tokens in its reserves, however, that cryptocurrency lost up to 99.99% of its value recently.
The ravages caused by the collapse of different cryptocurrencies in that market continue to make themselves visible in that environment, in which several big-name tech investors and entrepreneurs have confirmed losses.
Such is the case with Binance platform founder and boss Changpeng Zhao, who recently claimed that he has lost several hundred million dollars after Terraforms’ Luna and UST cryptocurrencies crashed last week.
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In an article published by Business Insider, the specialized media quotes the cryptocurrency businessman, who stated that after the losses with Luna “he has become poor again.”
The above because that cryptocurrency, also known as a governance token, lost practically 99.99% of its value in a few days, so Zhao saw how the $1,600 million that Binance had in its reserves are now worth just $2,200.
According to Insider, Binance had up to 15 million Luna tokens in its reserves, which were purchased for $3 million in 2018 and that, despite having obtained a good revaluation in recent years due to the increase in the price of the token, the themselves suddenly became insignificant.
Luna’s case is curious because its depreciation was a chain effect from the loss of parity with the dollar that UST had, a “stablecoin” that, in theory, has the same value as $1, however, in the Last week it broke free and fell to as low as $0.13.
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For this reason, the fall of both cryptocurrencies has caused considerable losses among Terra investors, among whom there are testimonies of people who have even lost their properties, according to international media.
In that sense, the collapse of Luna and UST could be considered as a failure in the very protocol of the network in which they work, because when UST began to lose parity, the protocol began to buy Luna tokens with the remaining coins to stabilize the price. Something that did not happen.