Terra News Today
Changpeng “CZ” Zhao CEO of cryptocurrency exchange Binance Recently, he questioned the notion that hardforking could be a viable option for the Terra blockchain in order to revitalize the once vibrant the LUNA and the UST ecosystems. On the other hand, following the same, CZ revealed his perspective on the right way to proceed for the ailing projects in the crypto community.
“This won’t work,” CZ said. CZ while rejecting the idea of validators for the possibility of a hard forking of TERRA2 that would entail the release of a new version the LUNA system to all holders, with a picture of their holdings before the market crashed. CZ suggested
“Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin. I don’t own any LUNA or UST either. Just commenting.”
In the end, CZ suggested the Terra community first utilize their Bitcoin ( BTC) reserves to purchase UST in order to keep its pegging. In announcing the possible problems in creating a fork in Terra, CZ said that “Minting, forking, don’t create value.” However CZ suggested buying back and burning as one best ways to revive the currency’s value. While expressing gratitude to his Terra group, CZ highlighted the need for “more transparency from the Terra community. More!” that includes information about specific transactions that occur on-chain (transaction IDs) of all funds:
“Failures can/will happen. But when they do, transparency, speedy communication and owning responsibility to the community is extremely important.”
CZ added that Binance did not have any active investments in Terra as well as did not the company buy the UST holdings, thus putting aside the rumours that circulated on the CryptoTwitter platform regarding Binance’s involvement in Terra:
Binance Labs which is the investment part of Binance has invested in a variety of projects in the last four years. According to CZ they have experienced different degrees of success and failures.
As a final note CZ is hoping that Terra can recover itself “in a proper and sensible way”:
Binance is among the first bird to suspend UST along with LUNA trades on their platform, as the Terra ecosystem began its downward spiral.
In the end, Binance users were unable to spot trade LUNA/BUSD or BUSD/UST pairs, one few hours before Terra blockchain validaters were ordered to shut down their network off in May.
