The fall in the price of Terra (LUNA) and the algorithmic stablecoin UST has become a topic of discussion among the crypto community. Binance founder and CEO Changpeng Zhao also continues to comment on the status of UST/LUNA.
Binance CEO shared his views on the LUNA/UST event
Terra’s (LUNA) collapse has not fallen off the agenda of the leading names of the crypto market. Changpeng Zhao (CZ), the CEO of the crypto exchange Binance, initially came to the fore with some bailout plans. He must have been angry that the Terra team rejected them and read what they knew, so this time he targeted the Terra administrators and the team and made heavy criticism.
However, CZ does not consider the Terra case to be a fraud and attributes the collapse to teamb stupidity. He argues that the first mistake made retrospectively was not to initiate a reserve sale when the UST lost 5% of its peg to the dollar, which would have prevented the collapse if this had been done.
Binance CEO, who has also criticized the structure of the project, states that there is nothing to fill the bottom of the project except the high interest rate incentive of 20%, and this situation has a significant impact on the collapse.
“It was almost impossible to escape from the UST/LUNA collapse last week,” CZ says, adding that the UST/LUNA collapse is an event that everyone regrets and many people are badly affected by. He says that it is not possible to find solutions that will satisfy everyone, and many solution proposals are not accepted anyway, as their own solution proposals are not taken into account.
Stating that there are serious mistakes in the design of the project, CZ emphasizes that “thinking that making an asset will increase its value” is the most stupid mistake. Changpeng Zhao notes that one of the main mistakes is the aggressive stimulus schemes, and he refers to the 20% annual interest yield in the Anchor Protocol.
After these explanations, he states that he does not agree with the “Ponzi” issue, which is widely spoken in the crypto community, and that this incident is due to stupidity rather than fraud. CZ also says that the Terra team could not manage public relations, which caused users to completely lose confidence in the project. CZ, who did not say anything clearly about the rescue plans announced by the Terra team, which we also covered in the news ofKriptokoin.com , also states that he will support the decision of the community.
