Binance CEO Changpeng ‘CZ’ Zhao says the leading cryptocurrency is ready to support Terraform Labs and its community’s rise from the ‘ashes’. He expects more transparency and accountability from the LUNA tokens and UST tokens team.
LUNA and UST’s collapse this past week caused ripples and attracted a lot of attention from around the crypto community and elsewhere. Among these reactions have been “falsehoods circulating in crypto twitter,” regarding what happened.
1/8 The last weeks have been a turning point for the crypto market. We saw the rapid decline in a major project. This has sent ripples through the industry and created a newfound resilience within the market that didn’t exist during the last market downswing.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
Regarding Binance’s support for Terra, Zhao explained that his viewpoint is that “minting, forking, don’t create value.” According to him, mechanisms that allow for buying back,or burning work. But this will require funds that Do Kwon’s Terraform Labs group may not have.
Binance will also work with the team. There is more to be done.
“In this regard, I would like to see more transparency from them. More! Also include on-chain transactions of funds (txids). Relying solely on third-party analysis is inaccurate and insufficient. This is the first thing that should have happened,” he said.
Projects can and will fail, but…
Zhao recognizes that there will be failures. However, the project team must be more transparent, communicate with each other and act quickly when there are setbacks. Binance chief, Binance Chief, added that failures are important and needed to be acknowledged in a thread on Twitter.
Zhao said Binance supported Terra’s first fundraising but not the second one. TerraUSD was not also acquired by the leading exchange.
“I am just hoping that the project teams can rise from the ashes and rebuild in a proper and sensible way. Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can”
Terra was devastated last week. De-pegging of UST from USD sent both the stablecoins as well as LUNA to zero. Binance stopped spot trading and resumed it for UST and LUNA.