Binance CEO Changpeng Zhao (CZ) said that Do Kwon actually had the right idea but made wrong practices.
Stablecoin comment came from CZ, CEO of Binance, the world’s largest cryptocurrency trading platform. Changpeng Zhao (CZ) said that Terra’s architect, Do Kwon, actually had the right idea.
CZ: Do Kwon Had The Right Idea But The Implementation Was Wrong
Silicon Valley Bank’s impact on USDC prices could cause a major crisis in the industry. For this reason, almost everyone in the industry is on their toes. However, given its direct involvement in destabilization, CZ accused banks of increasing stablecoin risks.
The fact that the bank led to the depeg in stablecoin caused many things in the system to be questioned. This has led Binance CEO Changpeng Zhao to believe that traditional banks pose a risk to stablecoins, which are often pegged directly to fiat currencies such as the US dollar.
A community member supporting CZ’s thinking came up with the idea for a crypto-backed stablecoin. CZ responded by highlighting the defunct algorithmic stablecoin launched by Do Kwon, saying:
“Do Kwon actually had the right idea, but failed miserably in execution.”
On March 11, Circle announced that Silicon Valley Bank (SVB) had not processed its $3.3 billion withdrawal request. The crypto market responded by selling USDC holdings. It caused the US dollar-backed stablecoin to lose its peg. Given the SVB’s direct involvement in destabilizing USDC prices, CZ accused banks of increasing stablecoin risks.
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