Luna: Manage Your Risk, We can Handle Ours - Changpeng Zhao
Changpeng Zhao's LUNA Investment
Earlier today, Changpeng Zhao made a post on Twitter saying that "a lot of people are reassured by the fact that unlike in traditional finance, even 'big players' like CZ can end up being 'bag holders' in the crypto industry." He went on to add that everyone should learn to manage their risks as big players can handle their risks.
Changpeng Zhao made massive profits from Terra's UST algorithmic stablecoin before it fell last week. He invested $3M in Luna and got 15M tokens. According to Changpeng Zhao, the tokens had a value of $1.6B at the height of Luna's pricing in April. But they are currently worth $2,391.
Regardless of his massive losses, he stated that they should compensate small investors who lost during Luna's meltdown last week first. Last week, Terraform Labs' algorithmic stablecoin UST plummeted to 13 cents. Luna was supposed to help the UST stablecoin maintain its dollar peg but crashed due to the disaster. Luna's value has plummeted from a peak of approximately $119 barely a month ago to a fraction of a cent.
Changpeng Zhao has long been a backer of Terraform Labs. In 2018, Changpeng Zhao's investment was the main investor in a $32M financing phase. However, Terraform Labs' relationship with Changpeng Zhao has recently deteriorated. Zhao expressed his disappointment with the Luna and UST teams' handling of the breakdown last week. Zhao was blunt when Do Kwon announced he planned to hard fork Terra or establish a separate blockchain.
Changpeng Zhoa is now making efforts to educate all his followers on cryptocurrency. Following the path of big players in the crypto world is bad as they know how to handle their risks. Despite losing millions on his investment, he still stands strong. But that can't be said for small investors.
