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

Pointing out the potential issues with forking Terra, CZ said that “Minting, forking, don’t create value.”

Changpeng “CZ” Zhao, the CEO of crypto exchange Binance, recently questioned the idea of hard forking the Terra blockchain as a means to revive the once-thriving Terra (LUNA) and TerraUSD (UST) ecosystems. Following up on the same, CZ revealed his perspective on the appropriate course of action for falling projects across the crypto community.

“This won’t work,” said CZ while dismissing the validators’ idea of a hard forking to TERRA2, which would involve providing a new version of LUNA to all holders based on a snapshot of the holdings before the market collapsed. CZ suggested:

Pointing out the potential issues with forking Terra, CZ said that “Minting, forking, don’t create value.” However, he recommended buying back and burning as an ideal way to revive the token’s market value. While showing support for the Terra community, CZ highlighted the need for “more transparency from them. Much more!,” which includes details about specific on-chain transactions (transaction IDs) of all the funds:

Walking the walk on being transparent with users, CZ later clarified that Binance received 15 million LUNA tokens as part of the returns from the original $3 million investment on Terra, which still sits at an address “never moved or sold.” He also disclosed that the same address contains 12 million UST tokens that were earned over time through staking. 

On an end note, CZ chose to lead by example and offered to bear the losses while requesting Terra to “compensate the retails users first, Binance last, if ever.”

Binance was among the early birds to have suspended UST and LUNA trading on its platform as the Terra ecosystem commenced its death spiral.

As a result, Binance users were no able to spot trade LUNA/BUSD and UST/BUSD pairs, just a day after Terra blockchain validators were forced to take the network offline on Thursday.

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