A recent document indicated that Binance considered a $300 million investment in Terra. However, it appears that the deal was never finalized.
CZ Debunks Investment Claim
The VP of Research at The BlockCrypto, Larry Cermak, has shared a document that suggests that Binance invested $300 million in the Terra (LUNA) project. According to the document, these funds were pledged during a $1 billion funding round in which Three Arrows Capital (3AC) also participated. Cermak had also previously claimed that Binance led Terra’s seed round in 2019 and 2021.
The CEO of Binance, Changpeng Zhao (also referred to as CZ), has strongly refuted all such claims of Binance’s involvement with Terra. He clarified that Binance had made an initial and minor investment of $3 million in 2018, but nothing since then. He stated,
Addressing CZ’s comments, Cermak admitted that there was a possibility that the deal was not finalized. However, he stood by the authenticity of the document that he retrieved and expressed doubts about who to believe. He commented,
CZ: Forking Won’t Work
The LFG team is scrambling to pick up after the crash of the Terra USD (UST) stablecoin. The Founder and CEO of Terraform Labs, Do Kwon, has proposed a revival plan for the stablecoin, wherein the Terra blockchain is forked, creating a new chain, and distributing 1 billion tokens to stakeholders.
Not to be left behind, CZ had also shared his two cents on this proposed plan, claiming that a fork would not add any value to the chain and called it “wishful thinking.” He stated that minting coins are just equivalent to printing money and, instead of creating actual value, just dilutes the existing coin holders. He also questioned the existence of the Foundation’s bitcoin reserves, claiming that they should be used to buy back UST first.
He also commented,