Binance CEO Changpeng Zhao said that Terra’s bifurcation plan will not work.
Binance CEO Changpeng Zhao continues his criticism of LUNA and UST. CZ said in a recent thread of tweets that he didn’t think Do Kwon’s new rescue plan would work. According to him, forking does not add any value to the new fork:
“This is not going to work… Forking does not add any value to the new fork. It was wishful thinking.”
Personal opinion. NFA.
This won't work.
– forking does not give the new fork any value. That's wishful thinking.
– one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf
— CZ 🔶 Binance (@cz_binance) May 14, 2022
This comment of CZ is based on Terraform Labs CEO Do Kwon It came after a plan to fork the blockchain to create a new chain and distribute 1 billion tokens to stakeholders. Kwon said the community needs to rebuild the chain to preserve the ecosystem.
The CEO also asked where the Luna Foundation Guard’s Bitcoin reserves are, and asked, “Shouldn’t these BTCs be used to redeem UST first?” he asked. LFG tweeted that it had accumulated 80,394 BTC last week. Now, the fate of these BTCs accumulated to support UST is unknown.
CZ said in a recent tweet that he was disappointed with the way the Terra team handled the issue.
Binance Labs was one of the first backers of Terraform Labs in 2018. The company had led Terra’s $32 million startup round with several other companies.
