The founder of Binance said he was poor again after losing billions of dollars incryptocurrencies after a market crash, which wiped out the fortunes of many investors. The exchange's assets fell to just $2,200 from $1.6 billion, at the token's peak price a month ago. In a tweet, Zhao claimed that Binance held 15 million Luna tokens that the exchange had obtained in exchange for a $3 million investment in the Terra network, which Luna is founded on. He said that the Luna token was never sold or moved.
Luna's fall began when TerraUSD, its sister coin, lost its peg to the US dollar. The prices of the two tokens are linked. When the price of TerraUSD dropped, investors raced to sell their holdings. The price of Luna was slashed by the drop in TerraUSD.
According to Bloomberg, Zhao has a net worth of around $14.9 billion as of Sunday, despite the crash and the fall in the price of Luna. According to Forbes, his estimated 70 percent stake in Binance accounts for the majority of his wealth.
In another tweet, Zhao called for the Terra team to make reimbursing its retail investors the top priority. He wrote: To lead by example on protecting users, Binance will let this go and ask the Terra project team to compensate retail users first, and Binance last, if ever. According to Binance data, Terra Luna has dropped 99.15 percent in the last few days. It has a market cap of $924.99 million.
In January 2018, Daniel Shin and Do Kwon founded Terra Luna, a blockchain technology that uses fiat-pegged stablecoins. The token was first made available to investors in a private token sale in August 2018, raising a huge $32 million investment from investors including Binance, OKEx and Huobi.
Zhao founded Binance, which has grown to become the world's largest criptocurrency exchange by daily trading volumes. Binance's daily average volume is over two billion, with over 14 lakh transactions per second. It provides 24 hours a day, 7 days a week of help with criptocurrency trading.