Binance CEO Changpeng ‘CZ’ Zhao says the leading cryptocurrency is ready to support the rise from the ‘ash’ of TerraForm Labs and its community. However, he expects the team behind LUNA and the UST token to provide greater transparency and accountability.
The collapse of LUNA and UST last week caused ripples and attracted a lot of attention from the crypto community and elsewhere. What happened in these responses about the “lies spreading in crypto Twitter”.
1/8 These past weeks have proved to be a turning point for the crypto industry. We have seen a rapid decline in a major project that sent ripples across the industry, but a new found resilience in the market that was not present during the previous market downturn.
— CZ Binance (@cz_binance) 15 May 2022
Regarding Binance’s support for Terra, Zhao explained that his approach is “founding, forking, not creating value.” According to him, mechanisms that allow buy back, or burn work. However, this requires funding, which Do Kwon and his Terraform Labs team may not have access to.
Hence Binance will work towards helping the team. But more still needs to be done.
,In this regard, I would like to see more transparency from them. very much! Including specific on-chain transactions (txid) of all funds. Relying on third party analysis is not sufficient or accurate. this is the first thing that should have happened,” They said.
Projects can and do fail, but…
Zhao acknowledges that failures can and will happen. However, when such setbacks occur, the team behind the project needs to be more transparent, act with speed, and communicate. As the Binance chief added in a Twitter thread on Sunday, ownership is also important when failures happen.
Zhao said that Binance supported Terra’s first fundraising but not the second. The leading exchange also did not acquire any TeraUSD.
,I’m just hoping that the project team can rise from the ashes and rebuild in a proper and sensible way. Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way possible,
Tera fell dramatically last week, with the de-pegging of UST from the dollar sending both stablecoins and LUNA to zero. Binance halted and then resumed spot trading for LUNA and UST.