On Sunday (May 15), Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) shared his latest thoughts on the recent failure one of the most high profile projects in the crypto space.
As leading digital asset market data provider CryptoCompare said in a comprehensive report (titled: “Exploring UST’s Fall From Grace”) published on May 13, “the recent blowup in the Terra ecosystem has been one of the most impactful events in the history of crypto – comparable with the collapse of Mt. Gox in 2014 and the sharp market crash in January 2018 and in March 2020.”
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In a series of tweets sent out on May 15, CZ said:
- Although Binance Labs “invested $3m USD in Terra (the layer 0 blockchain) in 2018”, stablecoin TerraUSD ($UST) did not exist at that time, and Binance did not “participate in the 2nd round of Luna’s fund raising” nor did it “acquire any UST.”
- Binance Labs has “invested in hundreds of projects over the last 4 years, including exchange ‘competitors’ and many ‘competing’ blockchains.” A few have “fallen by the wayside” and a few have “been extremely successful”.
- Over “the last few days,” Binance “tried hard to support the Terra community.” In his tweets, he had tried to address various issues based on his understanding of the situation.
- He wants to see “much more” transparency from Terraform Labs, “including specific on-chain transactions (txids) of all the funds”.
- Although “failures can/will happen”, it is “extremely important” to have “transparency, speedy communication and owning responsibility to the community.”
- Regardless of whatever solution is chosen in the end, Binance stands ready to “support the community” in any way it can.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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