September 24, 2022

Chanpeng Zhao Says He’s Poor Again – Since Luna Crash

Changpeng Zhao, the founder of the biggest cryptocurrency exchange in the world – Binance, tweeted a few days ago that he was “poor again” after losing billions of dollars in cryptocurrency following a market crash, which wiped out the fortunes of many investors. The exchange’s assets in the cryptocurrency 

Luna fell downward spiral to just $2,200 from $1.6 billion, at the token’s peak price, a month before. In a tweet, Zhao claimed that Binance held 15 million Luna tokens, which the exchange had obtained in exchange for a $3 million investment in the Terra network, which Luna is founded on. The Luna tokens were “never moved or sold,” he added.

Luna’s fall began when TerraUSD, its sister coin, lost its peg to the US dollar. The two tokens’ prices are linked. When the price of TerraUSD dropped, investors raced to sell their holdings. The price of Luna was pulled down by the drop in TerraUSD.

Despite the crash and the fall in the price of Luna, Zhao has a net worth of around $14.9 billion, as of Sunday, according to Bloomberg. His estimated 70 percent stake in Binance accounts for the majority of his wealth, stated a Forbes report.

In another tweet, Zhao urged the Terra team to make reimbursing its retail investors top priority. He wrote, “To lead by example on protecting users, Binance will let this go and ask the Terra project team to compensate the retail users first, Binance last, if ever.”

Terra Luna has dropped 99.15 percent in the last few days, according to Binance data. It has a market cap of $924.99 million

from investors including Binance, OKEx, and Huobi.

Zhao founded Binance, which has grown to become the world’s largest cryptocurrency exchange by daily trading volumes. Binance’s daily average volume is over two billion, with over 14 lakh transactions per second. It provides cryptocurrency trading help 24 hours a day, 7 days a week.

Current Cryptocurrency Prices 

Most cryptocurrencies gained on May 23 as the global crypto market cap rose by 1.83 percent to $1.26 trillion over the last day. The total crypto market volume over the last 24 hours fell 35.63 percent to $48.82 billion.

The total volume in DeFi stood at $5.69 billion, 11.65 percent of the total crypto market 24-hour volume. The volume of all stable coins was at $41.51 billion, which is 85.03 percent of the total crypto market 24-hour volume

Bitcoin’s price is currently  $29,494.17. The dominance of the world’s largest cryptocurrency decreased marginally by 0.17 percent to 44.50 percent over the last day, according to CoinMarketCap data.

As of 8:35 am on May 22, these are the prices of the largest cryptocurrencies (data from WazirX).

How The Public Has Reacted To The Crash Thus Far

People frequently seek for other investing options, particularly during stock market downturns. Traditionally, gold was seen to be a safe haven, but recently, the market has been buzzing about cryptocurrency, particularly stablecoins.

The stock market and the crypto world have attracted a large number of new investors over the last two years, owing to a liquidity-driven bull market in a low-interest rate environment. Over 20 million Indians invested in cryptocurrency in 2021 alone. The recent crash has however made investors skeptical about their future in their respective cryptocurrency journeys.

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