- Cryptocurrency exchange Binance founder Changpeng Zhao tweeted “poor again” after the crypto luna token crashed.
- Binance coin holdings were once worth $1.6 billion but are now worth around $2,200.
- According to Bloomberg estimates, Zhao is still a billionaire and Binance is the largest cryptocurrency exchange in the world.
Chanpeng Zhao, the wealthy founder of cryptocurrency exchange Binance, joked on Tuesday that he was “poor again” after the exchange’s investments in cryptocurrency luna dropped from $1.6 billion just a month ago to around $2,200 this week.
Inside a tweet on Monday, Zhao said that Binance, the world’s largest cryptocurrency exchange, held 15 million luna tokens. Binance received these tokens in exchange for its $3 million investment in 2018 in the Terra network on which luna is based. Its luna tokens were “never moved or sold” on Monday, according to Zhao.
Insider contacted Zhao for comment.
Binance’s luna holdings were worth $1.6 billion in early April when the token hit its maximum price. But its recent drop has seen that figure shrink to around $2,200 this week. The coin is trading at around $0.0001468 on Thursday.
Luna’s value has dropped rapidly in the last two weeks.
Its implosion began when its sister token, TerraUSD, lost its parity with the US dollar two weeks ago. The valuations of the two tokens are linked to each other. When the price of TerraUSD dropped, investors rushed to divest their holdings in this token in a scenario similar to a bank run. The fall of TerraUSD, in turn, brought down the price of luna.
The free fall of the two tokens is estimated to have wiped out more than $50 billion in paper value, Insider reported Sunday.
Zhao on Monday asked the Terra team to repay its retail investors first. “To lead by example in USER PROTECTION, Binance will set that aside and ask the Terra project team to compensate retail users first, Binance last, if ever,” he said. tweeted.
Despite his comments, Zhao, 45, is definitely not broke. He has one
of about $14.8 billion on Thursday, based on Bloomberg estimates. Most of his wealth likely comes from his estimated 70% stake in Binance, according to Forbes.
Binance’s market cap is estimated to be six times that of its closest competitor, Coinbase, Forbes reported in March. Binance received about $14.6 billion in trading fees last year, according to MarketWatch, which cited a report published by financial services consultancy Opimas.