CEO of Binance is dissatisfied with Terra's response to the recent crash


The CEO of Binance, Changpeng Zhao, or CZ, has expressed dissatisfaction with Terra's handling of the collapse of its native crypto asset Luna and its stablecoin TerraUSD (UST). Zhao told his six million Twitter followers that Binance reached out to the Terra team and offered suggestions on how to deal with the crisis, while also implying that the Terra team hardly responded to Binance's request for assistance in restoring the network.

"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.




"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).




"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.