Changpeng “CZ” Zhao, CEO of Binance, said the leading cryptocurrency is willing to help Terraform Labs and its community emerge from the ashes. He does, however, expect the team behind the LUNA and UST tokens to be more transparent and accountable.
The collapse of LUNA and UST this week caused ripples and drew a lot of attention from the crypto community and elsewhere. Among these comments have been “falsehoods floating on crypto Twitter” about what happened.
Regarding Binance’s support for Terra, Zhao said that “minting and forking do not create value.” The new mechanisms allow the purchase or destruction of work, according to him. This, however, requires funds that Do Kwon and his Terraform Labs team may not have.
As a result, Binance will try to assist the team. However, more has to be done.
“I would want to see greater openness from them in this area. Much, much more! Including all funds’ particular on-chain transactions. Relying on third-party analysis is insufficient and inaccurate. This should have been the first thing that should have occurred,” he said.
Zhao admits that failure may and will happen. Nonetheless, when such failures arise, the project team must be more open, respond quickly, and communicate. According to the Binance CEO in a Sunday Twitter thread, owning up to shortcomings is also critical.
Zhao said that Binance supported Terra’s first financing round but not the second. The top exchange did not acquire any TerraUSD either.
“All I can hope is that the project teams will be able to rise from the ashes and rebuild in a proper and sensible manner. Regardless of my personal opinions or the final result, we will always be here to help the community in any way we can.”
Terra fell sharply last week, with the separation of UST from the dollar causing both the stablecoin and LUNA to go to zero. Binance temporarily suspended and then restarted LUNA and UST spot trading.
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