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Binance CEO and celebrated tech leader Changpeng Zhao has been in talks for the last few days for one of his tweets. He tweeted “poor again” after the sudden market crash despite owning the crypto exchange.
evidently, Zhao lost billions of dollars when the exchange’s assets in the cryptocurrency Luna tumbled. Luna’s valuation was about $1.6 billion in April 2022, which has come down to $2,000 only.
In one of his tweets to prove that the Binance Founder was “Poor Again”, Zhao mentions that he had purchased 15 million Luna tokens in return for a $3 million investment in 2018.
How did Luna’s implosion start?
Luna saw a downfall when TerraUSD — its sister token — lost its peg to the US dollar. The prices of these two tokens are linked to each other. So, as TerraUSD’s price dropped, investors rushed to sell all their holdings. As a result, Luna’s price was dragged down.
Poor Zhao is not so poor!
As per Zhao’s tweet, after the market crashed, he remarked that he was ‘poor again’. However, this seems an exaggeration.
At present Zhao’s net worth is around $14.9 billion, as per Bloomberg. Another report by Forbes stated that his estimated 70% stake in Binance accounts for the “majority of his wealth”.
Zhao also showed his disappointment towards the team behind Luna and UST. He was disappointed to see how both of these teams handled the collapse. However, when Terraform Labs CEO Do Kwon said that he wanted to fork Terra or make a new blockchain and distribute millions of tokens in a new cryptocurrency to supporters, Zhao put forward his opinion openly. He said that “this won’t work”.
In another post, Changpeng Zhao asked the Terra team to make its retail investors a top priority and compensate them first.
What do you think of his statement? Tell us in the comments below.