One of the most famous names in the crypto market, Binance CEO Changpeng Zhao (CZ) has been vocal about the LUNA-UST event but has not been very positive.
2. An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange.
— CZ 🔶 Binance (@cz_binance) May 13, 2022
Binance CEO Changpeng Zhao criticizes Terra (LUNA)
After Binance delisted LUNA and UST spot, margin and futures, leaving two spot trading pairs, LUNA/BUSD and UST/BUSD (which were also suspended today), in a series of tweets on Twitter, CZ loudly criticized LUNA – UST.
According to him, the exchange’s top priority is still to protect users after a large amount of LUNA was released in the past to rescue the UST price. But this action of Terra caused their currency to become hyper-hyper-inflationary and forced to stop blockchain operations to ensure security on the evening of May 12.
And during that time, many people thought they had bought LUNA at a good price because they thought they were lucky to catch the bottom, but they were disillusioned and suffered heavy losses when the blockchain worked again and continued to print more LUNA. In the past four days, the supply of LUNA has increased from less than 400 million to 6,900 billion LUNA, causing the price of this token to decrease by 106.6 million times. On May 13, Terra decided to stop the blockchain indefinitely.
Until now, the CEO of Binance has always maintained a neutral attitude towards projects, silently supporting from behind instead of giving public opinions on social networks. However, because he was so disappointed in the way Terra’s team handled the situation, CZ decided to say the following:
6. (This is in sharp contrast to Axie Infinity, where the team took accountability, had a plan, and were communicating with us proactively. And we helped.)
— CZ 🔶 Binance (@cz_binance) May 13, 2022
CZ confirmed that the community will still be controversial about this event, but Binance suspending trading is the best way to protect users and monitor the situation 24/7.
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