Potential $5M Investment from Binance Could Revitalize Terra Classic

The Terra Classic network, which used to be very popular in the decentralized finance world and had promised to offer large-scale decentralized finance services, has lost its reputation over time. Although the community remains optimistic about its revival, its primary challenge is obtaining financial support for development.

According to a Medium blog post by Terra Grants Foundation Director Edward Kim on Saturday, there is a possibility that Binance may provide $5 million in funding to the foundation. The post provided an update on the foundation’s progress since its creation in November. If Binance decides to support the foundation, it could significantly change the funding situation for the Terra Classic network.

Terra Grants Foundation Update https://t.co/nY7MVPmKLw
— Edward Kim (@edk208) April 1, 2023

Last month, Binance acknowledged receiving a request from the Terra Grants Foundation that was made in December. This confirmation was provided to the foundation via email.

Kim made a case for requesting financial assistance from the industry recovery initiative of Binance to sponsor projects on the Terra Classic blockchain. He argued:

“Terra was the largest digital collapse next to FTX, but while FTX ( a centralized exchange) will die, Terra can live on. In fact, the revival and success of Luna Classic might be one of the best ways to instill confidence in DeFi.”

In the event that Binance approves the request made by the Terra Grants Foundation, the foundation will receive the requested amount of $5 million in two installments of $2.5 million each.

In December, Binance released a blog post announcing changes to its Terra Luna Classic (LUNC) burns, encouraging developers building on the Terra Classic network to apply for grants. This move contradicts previous statements made by some Terra Rebels members, who claimed that the network did not meet the eligibility criteria for Binance’s industry recovery initiative.

In February, fxcryptonews reported that TerraCVita, a development group that operates independently of Terra Classic, was contemplating applying for the grant from Binance.

Binance continues to be one of the biggest supporters of Terra Classic, having already sacrificed millions of dollars in trading fees to support the community’s burn initiative.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.