Pointing out potential problems with the large issuance of Terra Tokens (Luna), CZ stated that “Mining more tokens or creating a fork will not create value.”
Changpeng Zhao (CZ), CEO of crypto exchange Binance, recently questioned the idea of the Terra blockchain hard fork as a solution to revive the once thriving LUNA and UST ecosystems. a time. Accordingly, CZ revealed its views on the appropriate actions for projects that are on the verge of slipping in the crypto community.
“This is not going to work,” said CZ while dismissing validators’ idea of a hard fork of TERRA2, which would involve making a new version of LUNA available to all Luna token holders, based on his snapshots of holdings before the market crash.
“Reducing the supply should be done through a token burn, not a fork of the old version and abandonment of all those who tried to rescue the coin. I also do not own any LUNA or UST.”
Instead, he suggested that the Terra community should first use the Bitcoin (BTC) reserves in the reserve to buy back UST in order to revive its peg.
Pointing out potential problems with Forking Terra, CZ said that “Mining more tokens or creating a fork will not create value.” However, he advised the project to buy back Luna and burn that Token to revive the value of the Token. While showing support for the Terra community, CZ also emphasized the need for transparency in TFL’s operations, including detailed information about transactions on specific Blocks (transaction id ) of all funds:
“Failures can happen. But when they do, transparency, prompt communication, and accountability to the community are paramount.”
CZ further clarified that Binance has no active investments in Terra, nor does the company purchase any UST shares, refuting the ongoing rumors on Crypto Twitter about Binance’s interest in Terra:
“Binance Labs invested US$3 million in Terra (blockchain layer 0) in 2018. UST launched much later after our initial investment.”
Binance Labs, the investment arm of Binance, has invested in multiple projects over the past four years, which, according to CZ, have seen varying degrees of success and failure of each.
Ultimately, CZ hopes Terra can rebuild itself “in a decent and decent way”:
“Whatever my personal views, or ultimately the chosen solution, we will always be here to support the community in any way we can.”
On May 13, 2022, CZ expressed his frustration with the Terra project and Terraform Labs’ slow response in a Tweet as follows:
Quoting from a Twitter post, CZ said: “I am very disappointed with the way Terra team handles or accepts to let go of Luna/UST. We asked them to restore the network, burn the issued Luna, and find some way to bring UST back to its original price. In return, we have not received any positive feedback or can take it as feedback from them. This is in stark contrast to the Axie Infinity team, where they took on the responsibility of planning and proactively communicating with us. So we gave them a lot of support.”