The mammoth crypto crash caused by the Terra (LUNA) fiasco left different opinions from various people in the crypto community. Binance boss ChangPeng Zhao (CZ) in a wide-ranging AMA on Reddit and answered a variety of questions.
Thanks for all your questions. Answered as many as I could.
Seems @reddit has taken the AMA thread down. Working to get it back so you can see my answers.
— CZ 🔶 Binance (@cz_binance) May 21, 2022
Questions included Binance’s decision to trade LUNA despite its collapse, and other such related doubts.
CZ Reddit responded: Why Binance once said UST is safe; will participate in the rebuild of Luna; will Binance be counterparty; what risks does BUSD have; is BSC too centralized; what is the value of Web3.0; How has life changed since the richest man?https://t.co/ILawvaVKik
— Wu Blockchain (@WuBlockchain) May 22, 2022
The UST stablecoin lost its USD peg while LUNA shed off over 95% of its value. Following this unfortunate event, Binance’s CEO has been vocal about it. Binance resumed the trading of LUNA after the validators had forced the network to halt.
“We suspended trading briefly when the validators paused the blockchain, even that caused a lot of complaints,” he wrote. “But I believe our action forced the validators to resume the network within a couple of hours.”
Despite such a backlash, one thing remains – the overarching lack of bias in markets. CZ shared a similar narrative.
“No one is forcing anyone to buy just because trading is on. High-risk tolerance buyers are willing to take over from sellers. The marketplace is neutral.”
Binance, the largest exchange had staked UST in Anchor protocol to generate yield for users. CZ confirmed the same in the post.
“Yes, there were some, as part of the Earn program. These programs are accompanied by user education and extensive disclaimers – we are transparent about how this works, and the risks associated,” he added.
Earlier on, the Binance CEO had sent out a Twitter thread that detailed the organization’s decision to suspend LUNA trading on its platform. CZ also expressed his displeasure with how the Terra team handled the crash, saying that the team wasn’t responsive despite Binance trying to reach out to help.
In addition, the executive even raised concerns about the planned fork aimed to revive the Terra network. He asserted:
“The most stupid design flaw is thinking that minting more of an asset will increase its total value (market cap). Printing money does not create value; it just dilutes existing holders. Exponentially minting LUNA made the problem a lot worse.
Whoever designed this should have their head checked.”
CZ isn’t the only one opposing the fork. The majority of the Terra community voted against it during preliminary voting.
With or without you…
Well, despite the growing frustration, the Terra network did showcase some reviving vitals. In the past 24 hours, prices of some tokens in the Terra ecosystem increased significantly. The current price of LUNA is 0.00016, an increase of 46.7%, the current price of UST is 0.07, an increase of 20.9%, and the current price of ANC is 0.14, an increase of 76.2%.
Fair to say, whatever may come and go, the burning goes for ever.
— guesgous2 (@guesgous2) May 22, 2022