Binance Denies Rumour on Investing in Terra’s Second Fundraising Round
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CZ Clarifies Binance's Investment in Terra
In a now-deleted tweet by The Block’s Larry Cermak, the crypto-journalist stated:
“Easy to see why CZ is tweeting so passionately about LUNA. Binance led Terra’s seed round in 2019 and Terra’s 2021 round. In the last one that ended just like six months ago, they invested $300M with a 4y vest and 1y cliff (same amount as Jump).”
Zhao had been one of the most vocal critics of Terra since the crash of its tokens this weekend. Cermak implied that the Binance CEO was 'tweeting passionately about LUNA' because the crypto platform invested in LUNA, and Zhao was financially affected by the project’s failure.
Responding to this, the CEO himself stepped forward saying 'Binance did not participate in the 2nd round of Luna’s fundraising, nor did we acquire any UST.'
He clarified that Binance invested $3 million in Terra back in 2018 when the project was labeled a Layer 0 blockchain and that the trading firm did not invest in the protocol in its second financing round.
Binance Labs Invested in Various Projects
Zhao also noted that Binance Labs had made investments in a number of crypto projects over the last four years and while some of those projects have fallen by the wayside, a few have been highly successful.
“That’s how investments work,” he said.