Binance lured investors to invest in Terra USD before the crash.
Binance is the biggest crypto exchange functioning in the world in the terms of market capitalization. Binance, remains to be the biggest crypto company to process more transactions than the next four exchanges combined. Before, the market went down-hill, binance went on to suggest the investors about the stablecoin Terra USD. Basically, Terra USD a stablecoin was tipped to be served as a savings account and promised to be pegged at $1 at any circumstance. Binance went on to lure the investors to invest in the stable coin by stating that the asset offered something special and remarked the currency as safe and high yield.
When the crypto market imploded in May, all the cryptocurrencies and stable coins were hit. The one stable coin which actually caused the market implosion to go to the extent it did, was none other than Terra USD.
Terra USD almost lost 99% of the value and was de pegged to $0.09. The catastrophic crash of the stablecoin saw billions of dollars get wiped off in the market. Not only did investors lose their investments, they also lost their life savings, educational savings and what not.
The down fall of USD, saw Binance’s stake reduced from $1.6 Billion to zero in no time. Many critics also exclaimed that the coin was nothing but a Ponzi Scheme. The collapse also influenced the price of bitcoin to plummet and played a key role in bitcoin losing 70% of its value.
The market crash of such an extent also saw many companies in the crypto sphere taking harsh decisions such as laying-off employees, freezing the accounts of the customer and many more such hostile decisions.
Binance’s CEO acting indifferent to the crash.
Binance’s CEO Changpeng Zhao, really did not consider the market crash to be a calamity even after witnessing the havoc it caused in the market. The CEO also said that “I don’t really care about money” when asked about the loss in stakes of the company.
The comment came as he was observed sipping his $14 orange juice in Dubai. It is reported that, the CEO had moved to Dubai late last year. The CEO, who was acknowledged as the richest crypto person, was actually kept under scrutiny by the regulatory bodies of the market for luring the investors to invest in USD. The regulatory bodies have started investigating the matter more intensely as the market doesn’t look in a good situation.
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