CZ stated that minting and forking don’t create value, as he refers to the potential issues with forking Terra.
Changpeng “CZ” Zhao, CEO of cryptocurrency exchange Binance, recently questioned the idea of hard forking the Terra blockchain to revitalize the once-thriving LUNA and UST ecosystems. Following that, CZ shared his thoughts on the best course of action for failing projects in the crypto community.
“This won’t work,” CZ said, dismissing the validators’ idea of a hard fork to TERRA2, which would entail providing a new version of LUNA to all holders based on a snapshot of the holdings before the market collapse. CZ proposed:
“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 proposed that the Terra community first use its Bitcoin (BTC) reserves to buy back UST to restore its pegging.
CZ stated that “minting and forking don’t create value,” referring to the potential issues with forking Terra. He did, however, recommend buying back and burning as some of the best ways to restore the token’s market value. While expressing support for the Terra community, CZ emphasized the need for “much more transparency from them, much more!,” which includes information about specific on-chain transactions (transaction ids) of all funds:
“Failures can/will happen. But when they do, transparency, speedy communication, and owning responsibility to the community is extremely important.”
CZ went on to say that Binance had no active investments in Terra and had not acquired any UST holdings, putting to rest the ongoing rumors on Crypto Twitter about Binance’s interest in Terra:
“Binance Labs invested USD 3m in Terra (the layer 0 blockchains) in 2018. UST came much later after our initial investment.”
Binance was among the first to suspend UST and LUNA trading on its platform as the Terra ecosystem began to die.
As a result, just a day after Terra blockchain validators were forced to take the network offline on May 12, Binance users were unable to spot trade LUNA/BUSD and UST/BUSD pairs.
