The collapse of the Terra ecosystem has shaken the cryptocurrency market, as the price of the LUNA cryptocurrency has fallen into dust after being previously a top 5 cryptocurrency by total market capitalization.

Amid all the ongoing drama, some rumors circulated on Twitter that crypto exchange Binance was a major investor in the Terra LUNA ecosystem.

Changpeng Zhao, CEO of Binance, presented to Clear the Air and Clarify Binance’s position on the Terra LUNA project.

Wrote CZ in his latest Twitter post:

First, I need to address the lies circulating in the crypto community on Twitter.

Binance did not participate in Luna’s second round of fundraising nor did we get any UST.

Read:South Korea calls on 14 countries to create international regulations for cryptocurrency

Binance invested $3 million in Terra (Blockchain Layer 0) in 2018.

UST came later after our initial investment.

In addition, CZ said that Binance has invested in several crypto projects over the past four years.

Some have outperformed while others have gone to zero.

He added, stating:

This is how investments work.

CZ Questions .’s Bitcoin Reserve Tera?

Since the collapse of the Terra ecosystem, some market players have suggested ways to recover from the situation.

One of the most recent proposals was to work hard and release the Terra 2.0 upgrade, create a portfolio snapshot before the crash began, and provide LUNA holders with the new LUNA 2.0.

In response to this, CZ said:

This will not work.

And the new upgrade will not carry any value.

This is wishful thinking.

Not all transactions can be invalidated after an old snapshot, either on-chain or off-chain (trading platforms).

He also asked what Terra was doing about all of its bitcoin reserves that were supposed to protect its dollar peg, and said:

Read:Over $100 Million Liquidated After Ethereum Rally Over $1,600

Shouldn’t all these bitcoins be used to buy back UST first?

For the past few days, we’ve been trying hard to support the Terra community.

In my tweets, I simply point out potential problems from my beliefs.

Minting, and forging, do not create value.

Buy again, burn does, but it requires money.

Money that the project team may not have.

In this regard, I would like to see more transparency from them.

Read also:

Here’s an explanation of what happened with Project Terra from the beginning until now!

In one month…the price of the digital currency LUNA collapsed from $116 to $0.0004