Binance CEO CZ Will Support Terra Community But Expects More Transparency
Changpeng “CZ” Zhao, the CEO of crypto exchange Binance, recently questioned the idea of hard forking the Terra blockchain as a way to revive the once-thriving LUNA and UST ecosystems. Along the same lines, CZ revealed his views on the proper course of action for dwindling projects in the crypto community.
“That won’t work,” mentioned CZ while rejecting the validators’ idea of a hard fork to TERRA2, which would involve providing a new version of LUNA to all holders based on a snapshot of holdings before the market crash. CZ suggested:
“Shrinking supply should be done by burning, not forking to an old date, and dropping anyone who tried to save the coin. I also don’t own a LUNA or UST. Just commenting.
Instead, he suggested that the Terra community first use its reserves of Bitcoin (BTC) to buy back UST to rekindle its peg.
1/8 The past few weeks have proven to be a watershed moment for the crypto industry. We have witnessed the rapid decline of a major project, which caused repercussions in the industry, but also a newfound resilience in the market that did not exist during the last market decline.
— CZ Binance (@cz_binance) May 15, 2022
Highlighting the potential issues with Terra forking, CZ said “stripping, forking, doesn’t create value.” However, he recommended buying back and burning as one of the ideal ways to revive the market value of the token. While showing support for the Terra community, CZ stressed the need for “more transparency on their part.” Lots more!”, which includes specific on-chain transaction details (transaction IDs) of all funds:
“Failures can/will happen. But when they do, transparency, prompt communication, and accountability to the community are extremely important.
CZ further clarified that Binance has no active investment in Terra, and that the company has not acquired any UST stakes, dismissing ongoing rumors on Crypto Twitter regarding Binance’s interest in Terra:
“Binance Labs invested US$3 million in Terra (the layer 0 blockchain) in 2018. UST came much later after our initial investment.
Binance Labs, the investment arm of Binance, has invested in numerous projects over the past four years, which CZ says have had varying degrees of success and failure.
As a conclusion, CZ hopes that Terra can rebuild itself “in a proper and sensible way”:
“Regardless of my personal opinions or the solution ultimately chosen, we will always be here to support the community in any way we can.”
8/ I just hope that the project teams will be able to rise from their ashes and rebuild themselves in a correct and sensible way. Regardless of my personal opinions or the solution chosen in the end, we will always be here to support the community in any way we can.
— CZ Binance (@cz_binance) May 15, 2022
Related: Breaking: Binance suspends trading of LUNA and UST due to issues on the Terra blockchain
Binance was among the first to suspend UST and LUNA trading on its platform as the Terra ecosystem entered its death spiral.
As a result, Binance users were unable to spot LUNA/BUSD and UST/BUSD pairs, just a day after Terra blockchain validators were forced to take the network offline on May 12.
Original Source