- Binance crypto exchange founder Changpeng Zhao tweeted “poor again” after the luna crypto-token crashed.
- Binance’s coin holdings were once worth $1.6 billion, but are now worth around $2,200.
- According to Bloomberg estimates, Zhao is still a billionaire and Binance is the largest cryptocurrency exchange in the world.
Chanpeng Zhao, the wealthy founder of cryptocurrency exchange Binance, joked on Tuesday that he was “poor againafter stock market investments in the luna cryptocurrency plummeted from $1.6 billion just a month ago to around $2,200 this week.
In a tweet On Monday, Zhao said that Binance, the world’s largest cryptocurrency exchange, held 15 million luna tokens. Binance received these tokens in exchange for its $3 million investment in 2018 in the Terra network on which luna is based. Its moon tokens “never moved or sold” as of Monday, according to Zhao.
Insider has reached out to Zhao for comment.
Binance’s moon holdings were worth $1.6 billion in early April when the token reached its peak price. But its recent drop saw the value drop to around $2,200 this week. The coin is trading at around $0.0001468 as of Thursday.
Luna’s value has plummeted rapidly in the last two weeks.
Its implosion began when its sister token, TerraUSD, lost its peg to the US dollar two weeks ago. The valuations of the two tokens are linked to each other. When the price of TerraUSD fell, investors were quick to unload their holdings of that token in a scenario similar to a bank run. The fall of TerraUSD, in turn, dragged down the price of the moon.
The freefall of the two tokens was estimated to have wiped out more than $50 billion in paper value, Insider reported on Sunday.
Zhao on Monday urged the Terra team to repay its retail investors first. “To lead by example in PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate retail users first, Binance last, if ever at all,” he said. tweeted.
Despite his comments, Zhao, 45, is definitely not broke. He has a
of about $14.8 billion as of Thursday, according to Bloomberg estimates. Most of his wealth likely comes from his estimated 70% stake in Binance, according to Forbes.
Binance’s market value is estimated to be six times that of its closest competitor Coinbase, Forbes reported in March. Binance received around $14.6 billion in trading fees last year, according to MarketWatch, which cited a report published by financial services consultancy Opimas.