Binance CEO CZ to support Terra community but expects more transparency

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Binance CEO CZ to support Terra community but expects more transparency
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Changpeng Zhao “CZ”, CEO of cryptocurrency exchange Binance, recently questioned the idea of ​​a hard fork of the Terra blockchain as a means to revive the once prosperous LUNA and UST ecosystems. Following that, CZ revealed his thoughts on the appropriate course of action for the falling project across the crypto community.

“This doesn’t work,” CZ said, while dismissing the idea of ​​validators hard forking TERRA2, which would involve providing all holders with a new version of LUNA based on a snapshot of their holdings before the market crash. CZ recommends:

“Supply reduction should be done by burning, not forking on the old date and giving up all who are trying to save the token. I also don’t have any LUNA or UST. Just a comment.”

Instead, he suggested that the Terra community should first use its Bitcoin (BTC) reserves to buy back UST in order to restore its peg.

CZ pointed out the potential problems with forking Terra, saying “minting, forking, not creating value”. However, he suggested buybacks and burns as some ideal means of restoring the token’s market value. While expressing support for the Terra community, CZ emphasized the need to “improve their transparency. More!”, which included details on specific on-chain transactions (transaction IDs) for all funds:

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“Failures can/will happen. But when they do, transparency, rapid communication and accountability to the community are extremely important.”

CZ further clarified that Binance is not actively investing in Terra, nor has the company acquired any UST holdings, refuting the persistent rumors on Crypto Twitter that Binance is interested in Terra:

“Binance Labs invested $3 million in Terra (a layer 0 blockchain) in 2018. UST came after our initial investment.”

Binance Labs, the investment arm of Binance, has invested in a number of projects over the past four years, which, according to CZ, have had varying degrees of success and failure.

In the end, CZ hopes Terra will rebuild itself “in a proper and sensible way”:

“Regardless of my personal views, or the solution ultimately chosen, we will always be here to support the community in any way.”

Related: BREAKING: Binance suspends LUNA and UST trading over Terra blockchain issues

Binance was one of the first birds to suspend UST and LUNA trading on its platform as the Terra ecosystem began a death spiral.

As a result, Binance users were unable to discover trading LUNA/BUSD and UST/BUSD pairs just a day after Terra blockchain validators were forced to take the network offline on May 12.



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