"While Binance always aims to be neutral, helpful and protective of all users and industry peers, and we typically refrain from commenting on other projects, I will break that rule this time," tweeted CZ.
2. An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange.
— CZ 🔶 Binance (@cz_binance) May 13, 2022
"I'm very disappointed in the Terra team's handling (or lack thereof) of the UST/LUNA incident. Their team was tasked with restoring the network, burning the extra LUNA, and recovering the UST peg. So far, we have received neither a positive nor a significant response. This is in stark contrast to Axie Infinity, a $625 million hack in March 2021, where the team took responsibility, had a plan, and communicated with us in a proactive manner. We also assisted "Zhao continued in subsequent tweets.
Binance temporarily suspended LUNA and TerraUSD trading with its proprietary stablecoin Binance USD after Terra's price crashed to $0 on May 13. (BUSD).
5. I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all
— CZ 🔶 Binance (@cz_binance) May 13, 2022
"An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol," Zhao explained why the crypto exchange had to stop trading LUNA and UST. Their validators have shut down their entire network, making deposits and withdrawals to and from any exchange impossible," he explains.
"Unaware of the large amounts of newly minted LUNA outside the exchange, some of our users began buying LUNA again, oblivious to the fact that once deposits are allowed, the price will likely crash even further." We halted trading because of these significant risks."
Binance decided to resume trading activities involving LUNA and UST a few hours later. The move, according to Zhao, allows users to convert their LUNA or UST into other digital assets.