The CEO of the world’s leading cryptocurrency exchange Binance, Changpeng Zhao (CZ), said that he expects more transparency from Luna’s team following last week’s UST-LUNA fiasco.
- Last week saw a top cryptocurrency literally go to zero in a matter of days.
- UST – Terra’s algorithmic stablecoin – lost its peg and crashed to some $0.225. Because of how the protocol works, this created a massive arbitrage opportunity as users could burn 1 UST and receive $1 worth of LUNA.
- So long as UST was below its peg, traders were able to print LUNA and dump it on the open market in a loop that saw a whopping 6.5 trillion enter circulation in a couple of days.
- Naturally, this crashed the price of LUNA to literally $0 as most of the exchanges delisted the asset.
- One of these exchanges was Binance. Now, CZ took it to Twitter to clarify his position on the matter.
1/8 These past weeks have proven to be a watershed moment for the crypto industry. We have witnessed the rapid decline of a major project, which sent ripples across the industry, but also a new found resiliency in the market that did not exist during the last market downswing.
Binance (@cz_binance) May 15, 2022
- CZ said that Binance didn’t participate in the second round of funding for Luna, and they didn’t acquire any UST. Binance Labs – the company’s investment arm – backed Terra with $3 million back in 2018 before UST was even a thing.
- He also clarified that “the last few days, we tried hard to support the Terra community. in My tweets, I am simply pointing out the potential issues from my understanding.”
In this regard, I would like to see more transparency from them (read: Luna team). Much more! Including specific on-chain transactions of all the funds. Relying on 3rd party analysis is not sufficient or accurate. This is the first thing that should have happened.