Binance's CZ "disappointed" with Terra Team's response to the crash

By    21 May,2022

Cryptocurrency delisted Terra tokens LUNA and UST on Friday morning after LUNA dropped below 1 cent.


Terraform Labs was slammed by the CEO of Cryptocurrency Security.

Cryptocurrency CEO and cryptocurrency's richest man, Changpeng Zhao, has criticized Terraform Labs' response to Terra's death.

Zhao revealed why Cryptocurrency chose to stop LUNA and UST trading in a Friday tweetstorm, which followed a previous notification on the exchange's website. Zhao said Terra's algorithmic coin stabilization process led to excessive LUNA minting, and that the Terra validator brought the network to a halt. "Some of our users, unaware of the large number of newly created LUNAs off the exchange, started buying LUNAs again, not realizing that the price would surely drop even more once deposits were allowed," he said. "Due to these serious risks, we stopped trading."

Zhao went on to clarify that while Coin generally remains "neutral" on crypto projects, he had some thoughts on how the Terra team handled the issue. He said.

"I am very disappointed with how the Terra team handled (or did not handle) the UST/LUNA incident. We asked their team to restore the network, burn off the extra cast LUNA, and restore the UST hookup. So far, we haven't gotten any positive response or much response at all"

Zhao compared the team's response to Sky Mavis' handling of the $550 million Ronin Network hack in March, noting that Axie Infinity "took responsibility, put a plan in place, and actively worked with [Binance]." Zhao also addressed the Terra issue yesterday, alerting cryptocurrency consumers to the dangers of algorithmic stablecoins.




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