Binance CEO Believes Terra’s Revival Plan Won’t Work

Time Stamp: May 16, 2022 12:49 AM
Source Node: 1309791

In the aftermath of last week’s historic collapse of Terra’s stablecoin, UST, and native token, LUNA, Binance CEO, Changpeng Zhao has offered his perspective on the blockchain network’s revival plan. Forking Terra Won’t Work, According to CZ After going under the radar amid the Terra network going into catastrophe, co-founder Do Kwon came up with a new plan to revive the blockchain ecosystem, two days later. The idea includes permanently abandoning UST and resetting LUNA to a 1 billion token circulation. The tokens in question will be distributed to both former holders wiped out by last week’s events, and to current holders. Within hours, Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange, tweeted that such a plan ‘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),” CZ wrote in his tweet. He also pointed out that one cannot simply void all transactions on a blockchain after an old snapshot, especially for trading transactions on crypto exchanges. 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 CZ Questions LFG’s Bitcoin Reserves In addition to pointing out that hard forking Terra was not a good idea, CZ questioned where the Luna Foundation Guard’s (LFG) Bitcoin went during the depegging of UST. According to CZ, the Bitcoin should have first been used to buy back UST. He also issued a disclaimer that he was not a current or past holder of UST. As to the whereabouts, Do Kwon had earlier tweeted that Terra’s team was currently working on documenting the use of the LFG’s BTC reserves during the depegging event. 4/ We are currently working on documenting the use of the LFG BTC reserves during the depegging event. Please be patient with us as our teams are juggling multiple tasks at the same time. — Do Kwon 🌕 (@stablekwon) May 13, 2022

The post Binance CEO Believes Terra’s Revival Plan Won’t Work appeared first on Cryptoknowmics-Crypto News and Media Platform.

Time Stamp:

More from Cryptoknowmics