Binance CEO Denies past investment in 2nd Investment Round of Terra

On May 16, 2022

Changpeng Zhao, founder, and executive of Binance, responded to a tweet of a journalist on Sunday that the exchange has invested in Terra’s Luna back in 2019 and 2021.

In a recent tweet from Larry Cermak Block’s VP of research, deleted as of now, the journalist said:

“It’s easy to see why CZ tweets so passionately about Luna. As Binance led the 2019 Terra Seed Round and the 2021 Terra Round. By the end of six months ago, they had reportedly invested $300M in Terra with a 4y vested and a 1y cliff.”

Reportedly, Zhao reacted to the tweet and replied that the VP of research at Block had misunderstood the facts and that Binance made only an investment of $3 million in the Layer 0 Blockchain network of Terra back in the year 2018.

He further tweeted that Binance was not involved in Luna’s second round of fundraising and they don’t own any amount of UST. Binance Labs invested $3m in Terra (Layer 0 blockchain) in 2018 and that UST came a lot later after we made our initial investment.

As Zhao recently has been one of the most serious critic of Terra ever since the Terra platform tokens collapsed this weekend, Cermak assumed that this level of criticism from Zhao was due to Binance’s Investment in LUNA and that the project’s failure financially affected Zhao.

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1/8 These past weeks have proven to be a watershed moment for the crypto industry. We have witnessed the rapid decline of a major project, which sent ripples across the industry, but also a new found resiliency in the market that did not exist during the last market downswing.
— CZ 🔶 Binance (@cz_binance) May 15, 2022

Zhao also made it clear that it would not matter even if Binance invested in Terra on the wrong timeline as suggested by Cermak. The Chief executive of Binance further shared that the Exchange had previously invested in several projects, including exchange rival blockchains.

Over the past few days, Zhao has been saying that Binance has already tried to support Terra and that his criticisms are from the perspective of those who want to see real value in the industry and want more transparency.

He tweeted:

“I want to see more transparency from them. More like Including specialized on-chain transactions (txids) for all funds. Relying on third party analysis is not enough or appropriate and this is what needs to happen first.”

Terra founder Do Kwon said with the newly proposed proposal to revive the ecosystem, of which Zhao was not fully sure that it would work. While Luna and UST trades have been stopped at several exchanges including Binance.