The Binance founder condemned the report, which was jointly published by Coindesk and Uppsala Security. The report implied that their own wallets had caused the Terra crash. Here are the details…
Binance CEO criticizes a report
Changpeng “CZ” Zhao, the founder and CEO of the world’s largest cryptocurrency exchange Binance, spoke about the report. He said that Coindesk’s report accusing Terra of causing the de-peg de-peg of TerraUSD (UST) was false. As we have also reported as Kriptokoin.com , UST is Terra’s algorithmic stablecoin. This coin, with its “de-pegging”, that is, its separation from its stable, almost dragged the markets into crisis.
CZ noted that the address specified in the report did not belong to Terra, as Uppsala Security and Coindesk claimed. As is known, Zhao has always been candid about the Terra incident. He criticized the team behind the project many times. Zhao used the following statements:
According to our analysis, this report is false. I didn’t defend Terra, I heavily criticized them. I’m just pointing out an error. Cunningham’s law. The address in the article does not appear to belong to Terra.
CZ often criticized Terra
The Binance founder has been outspoken about the Terra event since UST lost its peg against the dollar earlier last month. He has also criticized his team multiple times for the way they handled the situation by not communicating with their community sooner than expected. Apart from that, he criticized the team for the way they designed the Terra project, which he stated was prone to collapse. However, Binance’s criticism of Terra after the collapse of the project; It made no sense given that the biggest cryptocurrency exchange once promoted Terra as a safe investment weeks before it crashed.
Meanwhile, Terra said the value of ecosystem tokens has dropped drastically. Therefore, the ecosystem did not survive the negative reports. Do Kwon, founder of TerraForm Labs (TFL), is accused of committing fraudulent transactions before the project collapsed. However, the time Terra was under serious scrutiny was when Coindesk and Uppsala Security stated in a joint report that TFL had the address that caused the de-peg of the UST to be removed.
The report caused more panic in the Terra community after it went viral. Interestingly, popular Terra informant FatMan called the report false on the grounds that the address did not belong to the Terra developers, as claimed by Coindesk and Uppsala Security. FatMan had provided insider information at the start of the LUNA events. FatMan said that the address does not belong to the TFL team, but to a KuCoin hot wallet. “I am disappointed that an organization as prestigious as CoinDesk Korea published this without basic checks,” the anonymous personality said.
