Binance CEO Changpeng Zhao (CZ) gave an interview to Fortune magazine where he clarified many questions about Terra LUNA 2.0 and Do Kwon.
Is Binance wrong in its decisions in the LUNA crash?
In an interview with Fortune, Binance CEO said that Binance’s support of Terra is purely to protect its customers. The exchange had to provide liquidity to UST and LUNC holders as they received LUNA airdrops from Terra 2.0. Also, CZ was harshly critical of the Terra team in the early days of the collapse. Binance had reached out to Terra founder Do Kwon, but the Terraform Labs team responded late.
Meanwhile, CZ called on the stock market research team to delve into some serious allegations in LUNA 2.0.
“Binance received nothing from Terra (LUNA)”
When asked if Binance made any money from the event, CZ replied that Binance, like everyone else who invested in the original LUNA He admitted that he was hurt. Binance invested $3 million for 50 million LUNA in 2018. Had LUNA sold at its peak, the stock market would have made $1.6 billion. But it didn’t. Also, at the time of the collapse of the UST, Binance did not charge any transaction fees for the stablecoin.
“Do Kwon’s new stablecoin plans to be audited”
CZ took the time to dispel the fears that plagued the community about Do Kwon’s plans to launch a new stablecoin and leave the UST. According to CZ, Binance supported Luna 2.0 as it is seen as a continuation of the original version. CZ says his team will do a deep and heavy review on any new stablecoin created by Terra.
CZ made no statement about Do Kwon
CZ said he never even spoke to Do Kwon from Terra in a group conversation . Do Kwon tried to speak to CZ directly, but the CEO refused and directed the investment team to address Terra’s issues. He also revealed that he never knew Do Kwon was involved in Basis Cash, a failed stablecoin before.
Better due diligence needed
Prior to the UST there were reports of Do Kwon being involved in another stablecoin project called Basis Cash. The CEO said that Binance does not know this and it is difficult to determine the true identities of new project starters. CZ says the process is the whole market lesson:
I think the process needs improvement and we have a lot of lessons to learn. But fundamentally, each such situation cannot be avoided.
At Kriptokoin.com, we have covered a detailed article about the collapse of the Terra ecosystem here.
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