Binance CEO Changpeng Zhao spoke about the LUNA and UST incident.
Changpeng Zhao spoke once again about the LUNA and UST incident that rocked the crypto market. Speaking at an AMA (Ask Me Anything) event on Reddit, CZ voiced all of his views on the LUNA and UST, saying he found the situation “stupid”.
CZ also published an article before the event, responding to criticism from users who used the Binance UST staking service.
The CEO repeated his previous criticisms and said that the system’s biggest flaw is its mechanism, which believes that printing more UST will increase the overall value. Saying that the incident was not a scam, contrary to the rhetoric in the market, CZ jokingly said that everyone who designed this system should have their “heads checked”.
Terra’s system had previously received similar criticism from market commentators. Therefore, the foundation created a reserve of Bitcoin and various crypto assets to support the stablecoin in situations such as the increasing volatility and lack of liquidity on platforms like Anchor. However, the move was not successful, and as the UST’s stable deteriorated, there was a massive surge in supply of LUNA, causing the asset to plummet to as low as $0.00012. LUNA set ATH with $119 last month.
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