Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Binance CEO Calls Terra Luna & UST Mechanism “Stupid”

Cryptocurrency May 23, 2022 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Binance CEO Calls Terra Luna & UST Mechanism “Stupid”

In a recent blog post, Binance CEO Changpeng “CZ” Zhao expressed his thoughts on the infamous and turbulent crash of Terra Luna & UST. As part of the breakdown, CZ remarked that every aspect of Terra’s revival plan is flawed in some way.

Changpeng Zhao Points Out Flaws in the Core System

According to the CEO of Binance, it was a mistake to think that minting more UST and allowing an infinite number of LUNA tokens to criculare would somehow increase the value of the UST stablecoin. CZ said: “Printing money does not create value, it just dilutes the existing coin holders”.

Allegedly, Terra CEO Do Kwon staked additional funds in order to back UST in the event of extra volatility. Unfortunately, this did little to help the situation due to lack of exit liquidity. It’s assumed that Terra wasn’t even able to back the stablecoin with its BTC holdings.

The smart move, according to CZ, would have been for Terra to utilize its BTC reserves when depegging was at just 5%. In reality, Terra’s decision makers waited until the company was close to $80 billion down, and only then tried to stage a recover with $3 million. To Changpeng Zhao, the exacerbated the crumbling trust of investors has been a direct result of Terra’s lack of open communication.

Luna & UST Still Near Rock Bottom

Terra’s coins have taken a beating, and the initiated revival plans have yet to bear fruit. At press time, Luna has made modests gains of 16.2% in the last 24 hours to trade at $0.00018946, according to CoinGecko. On a positive note, that’s 18812.7% more than it was valued at 10 days ago, when Terra (LUNA) plummeted to an all time low.

On the other hand, the Terra (UST) stablecoin, which lost its peg and subsequently imploded as the ecosystem collapsed 10 days ago, is trading at $0.066359 at the time of writing, which is just slightly above two cents from its all time low.

Continue reading on DailyCoin

Binance CEO Calls Terra Luna & UST Mechanism “Stupid”

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email