Binance founder and former CEO Changpeng Zhao, known as CZ, revealed in his autobiography that Binance made a $3 million investment in LUNA in 2018. Before the collapse of the Terra ecosystem, that position had reportedly grown to around $1.6 billion in value.
Despite the massive paper gain, Binance did not move to significantly cut its holdings ahead of the crash. According to CZ, the exchange was concerned that a large-scale sale could have intensified market panic and accelerated the downward spiral already hitting the market.
Why Binance did not sell
CZ said one of the key considerations was optics and market impact. In a rapidly deteriorating environment, Binance did not want to appear to be exiting before retail investors. For a major industry player, selling into weakness can be interpreted as a strong negative signal, especially during periods of fragile sentiment and extreme volatility.
The disclosure highlights a broader dilemma in crypto markets. Large holders must balance risk management and profit-taking against the possibility that their own actions could worsen price pressure, damage confidence, or trigger further panic. In the Terra case, the speed and scale of the collapse turned that dilemma into a lasting point of debate across the industry.
Terra’s legacy still matters
The comments have renewed attention on one of crypto’s most damaging blowups. Terra’s collapse wiped out enormous value, hurt investor confidence, and left a lasting mark on discussions around exchange responsibility, transparency, and crisis management. By disclosing the size of Binance’s LUNA exposure and the reasoning behind its decision not to sell, CZ has added a new perspective to how major platforms navigated that episode.