On May 20, Binance CEO Changpeng Zhao expressed his thoughts on the Terra Luna & UST crashes in a Binance blog post titled “CZ’s FAQ 8.” CZ said every aspect of Terra’s resurrection plan was wrong in some manner. In his blog post, he also mentioned his tweet of May 13 in which he mentioned his concerns about Luna and UST.
According to Binance’s CEO, it was a mistake to believe that minting additional UST and enabling an endless number of LUNA tokens to circulate would somehow raise the UST stablecoin’s value. “Printing money does not increase value; it only dilutes the current currency holders,” CZ said.
According to reports, Terra CEO Do Kwon staked additional funds to support UST in the case of increased volatility. Unfortunately, because of a shortage of exit liquidity, this did little to improve the situation. It is thought that Terra didn’t have enough BTC to back the stablecoin.
Terra’s coins have taken a massive hit, and the restoration initiatives that have been begun have yet to bear fruit. Luna has gained 16.2% in the last 24 hours and is currently trading at $0.0001836 at writing time. On the positive side, that’s 18812.7% more than it was 10 days ago, when Terra (LUNA) hit an all-time low.
On the other hand, the Terra (UST) stablecoin, which lost its peg and then collapsed when the ecosystem failed 10 days ago, is currently trading at $0.066359, just barely over its all-time low.
