#Binance #CEO #Changpeng #Zhao #Forking #Terra #LUNA #Useless
Changpeng Zhao criticizes Terra
the CEO of Binance He hadn’t been tender anymore, and rightly so, against the management of the collapse of the Terra ecosystemand more particularly his LUNA and UST tokens. In fact, on May 13, Changpeng Zhao had publicly stated that his team had proposed solutions to Terra, that remained unanswered.
Later the same day, make kwonthe founder of Terra, had published a proposal to save the structure of the block chain and try to maintain their community through distribution of a new token.
Following this announcement, CZ took the opportunity to provide a further update on the situation and clarify his thoughts. According to him, The idea of forking towards a “Terra 2” raised by Do Kwon is doomed to failure since this won’t create any new values:
It will not work. Performing a branch does not give the new branch any value. It is an illusion. You cannot reverse all transactions after a previous snapshot, both on-chain and off-chain (exchanges). Where is all the BTC that was supposed to be used as a reserve? »
Furthermore, to protect Binance users, Changpeng Zhao recently announced that UST/BUSD and LUNA/BUSD pairs would be disabled on Binance, while implicitly explaining that the price of these last 2 was clearly not on its way to going up again.
👉 To dig deeper: Why did the UST stablecoin crash and what is the future of the Terra ecosystem?
A lack of transparency coming from Terra
For a few days now, CZ has been defending the idea that the best way to find the 1-dollar peg (benchmark) for the UST would be burn the number of LUNA tokens needed. In fact, since the decoupling of UST, a staggering sum of LUNA tokens have been created, thus totally diluting its value.
“Supply reduction needs to be burned, not forked on an old date and abandoning everyone who tried to save the token. I also don’t have a LUNA or UST. I’m just commenting »
The burning added to the use of Bitcoin reserves de Terra could, in his opinion, get the UST back on track.
” Create [minter], fork, does not create value. Redeem, burn, it does, but it requires funds. Funds that the project team may not have. […] In this sense, I would like them to be more transparent. Much more ! And more particularly in regards to transactions on the block chain (txids) of all funds. »
He ends by adding that to err is human, remediable, but that it is essential to always be transparent in front of your community :
“Failures can and will happen. But when they do, it’s extremely important to be transparent, communicate quickly and take community responsibility.”
A noticeable absence of Do Kwon
Although the name of the founder of Terra is not mentioned, it is very likely that CZ is referring to the lack of communication from Do Kwon, who was totally absent from radar for almost 3 full days during the loss of value of his 2 tokens, and this after telling his community that “ have good “.
As mere observers, we currently don’t know what goes on inside Terra’s offices, but it seems unfortunate that the teams behind the project are refusing help from Binance’s CEO, who has already helped financially struggling projects in the pastespecially following Ronin’s sidechain trick, for example.
Changpeng Zhao also reminds through his tweet that Binance Labs had been financially involved to the tune of $3 million in 2018 to support the development of the Terra blockchain. Finally, he states that: the UST came much later after our initial investment “.
👉 To read on the same topic: LUNA Token Trading Halts on Crypto.com Following Price Mistake
Newsletter 🍞y 👌 And that’s i