Pointing out the potential issues with forking Terra, CZ said that “Minting, forking, don’t create value.”
Changpeng “CZ” Zhao,
the CEO of crypto exchange Binance, recently questioned the idea of
hard forking the Terra blockchain as a means to revive the once-thriving
LUNA and UST
ecosystems. Following up on the same, CZ revealed his perspective on the
appropriate course of action for falling projects across the crypto
community.
“This won’t work,” said
CZ while dismissing the validators’ idea of a hard forking to TERRA2,
which would involve providing a new version of LUNA to all holders based
on a snapshot of the holdings before the market collapsed. 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.”
Instead, he suggested that the Terra community should first use its Bitcoin (BTC) reserves to buy back UST to revive its pegging.
Pointing out the potential issues with forking Terra, CZ said that
“Minting, forking, don’t create value.” However, he recommended buying
back and burning as some of the ideal means to revive the token’s market
value. While showing support for the Terra community, CZ highlighted
the need for “more transparency from them. Much more!,” which includes
details about specific on-chain transactions (transaction ids) of all
the funds:
“Failures can/will happen. But when they do,
transparency, speedy communication and owning responsibility to the
community is extremely important.”
CZ further clarified
that Binance had no active investments in Terra, nor did the company
acquire any UST holdings, dismissing the ongoing rumors on Crypto Twitter about Binance’s interest in Terra:
“Binance Labs invested $3m USD in Terra (the layer 0 blockchain) in 2018. UST came much later after our initial investment.”
Binance
Labs, the investment arm of Binance, invested in numerous projects over
the past four years, which according to CZ, have seen varying degrees
of success and failures.
On an end note, CZ hopes Terra can rebuild itself “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 we can.”
Related: Breaking: Binance suspends LUNA and UST trading amid issues on Terra blockchain
Binance
was among the early birds to have suspended UST and LUNA trading on its
platform as the Terra ecosystem commenced its death spiral.
As a result, Binance users were no able to spot trade LUNA/BUSD and UST/BUSD pairs, just a day after Terra blockchain validators were forced to take the network offline on May 12.
source link : https://cointelegraph.com/news/binance-ceo-cz-to-support-terra-community-but-expects-more-transparency
