Binance CEO Changpeng Zhao (CZ) gave an interview to Fortune magazine where he clarified many questions about Terra LUNA 2.0 and Do Kwon.
Is Binance wrong in its decisions in the LUNA crash?
In an interview with Fortune, Binance CEO said that Binance’s support of Terra is purely to protect its customers. The exchange had to provide liquidity to UST and LUNC holders as they received LUNA airdrops from Terra 2.0. Also, CZ was harshly critical of the Terra team in the early days of the collapse. Binance had reached out to Terra founder Do Kwon, but the Terraform Labs team responded late.
Meanwhile, CZ urged the stock market research team to delve into some serious allegations in LUNA 2.0.
“Binance did not receive anything from Terra (LUNA)”
When asked if Binance made any money from the event, CZ replied that the original LUNA investor admitted that Binance, like everyone else, is at a loss. Binance invested $3 million for 50 million LUNA in 2018. Had LUNA sold at its peak, the stock market would have made $1.6 billion. But it didn’t. Also, at the time of the collapse of the UST, Binance did not charge any transaction fees for the stablecoin.
“Do Kwon’s new stablecoin plans to be audited”
CZ, community-blind fears over Do Kwon’s plans to launch a new stablecoin and leave the UST took the time to distribute it. According to CZ, Binance supported Luna 2.0 as it is seen as a continuation of the original version. CZ says his team will do a deep and heavy review on any new stablecoin created by Terra.
CZ made no statement about Do Kwon
CZ had a chat with Do Kwon from Terra He said he never spoke, even in the group interview. Do Kwon tried to speak to CZ directly, but the CEO refused and directed the investment team to address Terra’s issues. He also revealed that he never knew Do Kwon was involved in Basis Cash, a failed stablecoin before.
Needs better due diligence
Prior to the UST there were reports of Do Kwon being involved in another stablecoin project called Basis Cash. The CEO said that Binance does not know this and it is difficult to establish the true identities of new project initiators. CZ says the process is the whole market lesson:
I think the process needs improvement and we have a lot of lessons to learn. But fundamentally, each such situation cannot be avoided. At
Kriptokoin.com we have covered a detailed article on the collapse of the Terra ecosystem here.
