In a recent interview, Binance co-founder and CEO, Changpeng Zhao (also known as “CZ”), shared his thoughts on the recent failure of one of the highest-profile projects in the cryptocurrency market. As the leading digital asset market data provider CryptoCompare said in an excellent full report (titled: “Exploring UST’s Fall From Grace”) published on May 13, “The recent explosion in the Terra ecosystem has been one of the most shocking events in crypto history: comparable to the collapse of Mt.Gox in 2014 and the sharp market decline in January 2018 and March 2020.” On May 28, Terraform Labs announced that the mainnet for a new blockchain called Earth 2.0 (which has a native token called $LUNA or $LUNA2 depending on who you ask) had gone live. As for the old Terra blockchain, its native token is $LUNA or $LUNC, depending on which exchange or data aggregator you look at. For example, on Binance, the old and new tokens are called LUNC and LUNA.
1/ Block 1 of the brand new Terra blockchain (with a chain_id of “Phoenix-1”) has officially been produced at 06:00 AM UTC on May 28th, 2022! Congratulations to the #LUNAtic community on this expeditious feat of collaboration 🎉— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 28, 2022
Shortly thereafter, most or all of the major cryptocurrency exchanges announced support for the new blockchain (which is not a fork of the old Terra blockchain) and its native token. Regardless, on May 31, Fortune posted a transcript of his recent interview with CZ. Here are some highlights of CZ’s comments during that interview: “I think overall the whole situation is a mess. It’s not good for anyone. He hurt many users. Much value has disappeared. I think fundamentally there were design flaws in the design of UST, Terra, et cetera.” “There were also operational flaws. The Terraform Labs team did not respond quickly enough. They didn’t use their reserves to restore linkage when linkage deviated just a little bit. And only after it collapsed [perdiendo alrededor de] $80 billion, they tried to use the $3 billion reserve to try and get that back. Of course, at that time, it doesn’t work.” “We, as one of the largest exchanges, have a large number of users who hold this coin. We still have to take care of those users. And the best way is to provide liquidity for the new currency, because the new one will replace the old one.” “For the record, I have never spoken with Do Kwon directly. Not even today. During the investment stage, I did not speak with him. Our investment team spoke with him. We have a very fast internal review process, which I’m a part of, but I didn’t have to talk to him.” Disclaimer: The information found on CryptoReport is that of the cited writers. It does not represent the opinions of Criptoinforma on whether to buy, sell or hold investments. You are advised to conduct your own research before making any investment decisions. Use the information provided at your own risk. See the Legal Notice for more information.
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