The CEO of one of the world’s largest cryptocurrency exchanges expressed his thoughts on the UST situation and explained why LUNA and UST trading were removed from the site.
First and foremost, the excessive amount of LUNA minted as a result of underlying Terra protocol flaws has impacted the peg of UST. Validators have halted the whole network as a result of the upheaval on Terra markets, thereby turning off all of the network’s essential services. From that point forward, no withdrawals or deposits were possible.
CZ tweeted the following:
According to CZ, substantial sums of LUNA were created and moved outside exchanges, causing some users to believe that selling pressure was diminishing and that they could buy some LUNA to break even on their position. However, the biggest concern was that once deposits were opened, selling pressure would return to markets, creating a continued slide.
CZ also expressed his dissatisfaction with UST and LUNA management’s handling of the incident. Binance demanded that the network be restored, the excessively minted LUNA be burned, and the peg be recovered, but Terra had not responded.
Other companies and initiatives, such as Axie Infinity, acted professionally in situations comparable to UST’s, according to CZ, by taking responsibility and laying out a plan that resulted in fast action on their part, as well as assistance from Binance.
Deposits and withdrawals of Luna and UST are currently restricted on the exchange, as the currency’s stability remains in doubt after Luna touched $0.00001, or 100 percent of the price seen only a week ago. UST is still trading at $0.17, unable to achieve $1.
Read more: According to Fitch, Terra Crash will boost regulation needs
