The largest crypto exchnage globally, Binance, had a lot invested in Luna. When the price of the coin peaked at nearly $1.6 billion, Binance’s total holdings were estimated at $1.6 billion, which were massive gains. However, we are all aware of what happened with UST and Luna due to the death spiral and hyperinflation. As a result, Binance’s $1.6 billion Luna investment is now at a mere $3,000: scary, isn’t it? If you were holding Luna tell us what it’s worth now.
Binance’s Luna investment
Binance invested in Luna back in 2018 and bought it at just $0.2 per token. They put in $3 million and received 15 million tokens. Binance’s returns were crazy on this investment, at least on paper. This is because all of it was unrealized or can be called paper gains. In reality, they didn’t make a single dime on the main investment and actually lost the entire capital.
However, the investment still wasn’t a loss for them as they earned $74 million UST in staking rewards which are $10.3 million now as the stablecoin lost its peg. The CEO of Binance said that he would like the project to compensate retail investors rather than whales.
The fall of Terra
Often, bear markets bring out projects that are either rug pulls or destined to fail. And mostly, these are not coins that well thought of, or their project doesn’t look serious. However, Luna was not one of those projects. Even though it didn’t succeed, no one would have thought it would fail miserably. The death spiral that happened due to UST’s depegging should have been thought of by the project’s team. However, they didn’t and see how it turned out.
There are revival plans by burning as much UST as possible and releasing forks of Luna, but it doesn’t seem that it will really work. The team has already burned through its BTC reserves (around 300 BTC left) in an attempt to re-achieve the dollar peg. But they have been unable to do so. Even if they fix things now, most investors who are still holding are just going to cash out and never look back.
Isn’t it scary that Binance’s $1.6 billion Luna investment is now at $3,000 with the ultimate crash in the crypto industry? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: All digital assets are securities, says Nigeria’s SEC.
