Binance CEO supports Terra community

Changpeng “CZ” Zhao, CEO of cryptocurrency exchange Binance, recently questioned the idea of hard forking Blockchain Terra to revive the luna and UST ecosystems that were once so developed. At the same time, CZ also offered his views on appropriate actions for projects that are failing in the cryptocurrency community. “Doing so won’t work,” CZ dismissed the idea of hard forking terra2, which provides a new version of LUNA to holders based on photographs of holdings before the market crash. CZ said: “To reduce supply, it is advisable to burn, not fork and abandon those who are trying to save this coin. I don’t own luna or UST coins. That’s just a comment.” Instead, he suggested that the Terra community should first use their Bitcoin (BTC) reserves to acquire UST to restore its price anchorage. CZ points to the underlying problem with forking Terra that “minting, forking doesn’t create value.” However, he advises that acquisition and burning are ideal methods to restore the market value of this token. While expressing support for the Terra community, CZ stressed the need for “more transparency from them.” A lot!”, including details of the specific on-chain transactions of all sources of money: “Failure can and will happen. But when it happens, transparency, quick communication and accountability to the community are extremely important.”

CZ continues to assert that Binance currently has no source of investment in Terra or that the company is not buying back UST’s stake, denying recent rumors of Binance’s interest in Terra on Twitter: “Binance Labs invested $3 million in Terra (Blockchain layer 0) in 2018. UST comes long after our initial investment.” Binance Labs, Binance’s investment arm, has invested in many projects over the past four years, which, according to CZ, have seen varying degrees of success and failure. Finally, CZ hopes that Terra can rebuild themselves “in a way that is appropriate and reasonable”: “Regardless of my personal views, no matter what solution they choose, we will support the community in any way we can.” Binance was one of the first companies to stop trading UST and LUNA on their platform when the Terra ecosystem began to collapse. So Binance users won’t find the LUNA/BUSD and UST/BUSD trading pairs just a day after the Terra Blockchain was forced to take it down on May 12.

>>> Read more about Binance at: Binance delists LUNA/USDT