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19-05-2022|Crypto

Binance's billionaire founder says he's poor again' after the crypto exchange's luna holdings, which were previously worth $1.6 billion— crashed and are now worth just $2,200.

  • After crypto-token luna collapsed, Binance's founder Changpeng Zhao tweeted, "poor again."
  • Binance's bitcoin assets were previously valued at $1.6 billion, but are now worth only $2,200.

Chanpeng Zhao, the billionaire founder of cryptocurrency exchange Binance, joked on Tuesday that he was "broke again" after the firm's assets in the bitcoin cryptocurrency fell from $1.6 billion a month ago to just $2,200 this week.

Zhao claimed that Binance, the world's largest crypto exchange, held 15 million luna tokens in a tweet on Monday. Binance obtained these tokens in exchange for a $3 million investment in the Terra network, which is the foundation for luna. According to Zhao, the luna tokens were "never moved or sold" as of Monday.

When the token reached its peak price in early April, Binance's luna holdings were worth $1.6 billion. However, following the latest slump, its value has dropped to around $2,200 this week. As of Thursday, the currency was selling for around $0.0001468.

In the last two weeks, the value of Luna has plummeted.

Its demise began two weeks ago, when its sister coin, TerraUSD, lost its link to the US dollar. The values of the two tokens are intertwined. When the price of TerraUSD dropped, investors raced to sell their shares in a scenario reminiscent of a bank run. The price of luna was pulled down by the drop in TerraUSD.

The free fall of the two tokens was said to have wiped off more than $50 billion in paper value, reported on Sunday.

Zhao asked the Terra team to repay its ordinary investors first on Monday. "Binance will let this go and ask the Terra project team to compensate the retail users first, Binance last, if ever," he tweeted.

Zhao, 45, is far from broke, despite his comments. He has a net worth of around $14.8 billion as of Thursday, based on Bloomberg's estimates. The majority of his fortune comes from his estimated 70% investment in Binance, according to Forbes.

Binance's market worth is predicted to be six times that of its nearest competitor, Coinbase, Forbes reported in March. Binance earned $14.6 billion in trading fees last year, according to MarketWatch, citing a research from financial services consultancy Opimas.

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