Billionaire founder of crypto exchange Binance says he's 'poor again' after its luna holdings — once worth $1.6 billion — crashed and are now worth just $2,200.

Changpeng Zhao, founder of Binance, joked he was "poor again" after crypto-Luna took a dive.REUTERS/Darrin Zammit Lupi
Crypto exchange Binance founder Changpeng Zhao tweeted “poor again” after crypto token Luna crashed.
Binance's holdings in the coin 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 world's largest crypto exchange.
Chanpeng Zhao, the wealthy founder of crypto exchange Binance, joked on Tuesday that he was "poor again" after the exchange's investments in cryptocurrency Luna plummeted to around $2,200 from just a month ago US dollar plummeted this week.
DISPLAY
In a tweet on Monday, Zhao said that Binance, the world's largest crypto exchange, owns 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," according to Zhao on Monday.
Insiders reached out to Zhao for comment.
Binance's Luna holdings were worth $1.6 billion in early April when the token hit its peak price. But the recent crash has shrunk that level to around $2,200 this week. The coin is trading at around $0.0001468 on Thursday.
Luna's value has fallen rapidly over the past two weeks.
Its implosion began when its sister token, TerraUSD, lost its peg to the US dollar two weeks ago. The valuations of the two tokens are tied to each other. As the price of TerraUSD fell, investors rushed to dump their holdings in this token in a bank run-like scenario. The collapse of TerraUSD, in turn, dragged Luna down.
The free fall of the two tokens was estimated to have wiped out more than $50 billion in paper value, Insider reported Sunday.
Zhao on Monday urged the Terra team to compensate its retail investors first. "In order to lead by example in PROTECTING USERS, Binance will abandon this and ask the Terra project team to compensate retail users first, Binance last if ever," he tweeted.
Despite his comments, Zhao, 45, is definitely not broke. He has a net worth of about $14.8 billion, according to Bloomberg estimates as of Thursday. The majority of his fortune probably comes from his estimated 70% stake in Binance, according to Forbes.
Binance's market value is estimated at six times that of its nearest competitor Coinbase, Forbes reported in March. According to MarketWatch, which cited a report published by financial services consultancy Opimas, Binance took in about $14.6 billion in trading fees last year.
Read the original article on Business Insider
BNB USD
+0.28%
LUNA1-USD
-21.14%

Last News

First-time voters weigh what they've never known - Turkey without Erdogan

Pedro Munhoz shares medical record to prove eye injury from UFC 276 bout against Sean O’Malley

"It's like Dodge City" - Philly mayor on gun laws

‘Stranger Things’ Season Five Episodes Will Be Shorter Than Season Four, Duffer Brothers Say

Ukraine reconstruction cost estimated at $750 billion – some could come from seized Russian assets: Live updates

Barack And Michelle Obama Celebrate Daughter Malia On 24th Birthday With Adorable Childhood Photos