- Binance Suspends LUNA and UST Trading
- CEO said he is disappointed with how crisis was managed
The CEO of Binance, Changpeng Zhao has berated the Terra team for the way they handled the Terra ecosystem crisis. In a May 13 twitter post monitored by Cryptoinfowatch, the exchange CEO said that the team did not take the right decisions and refused to take action on recommendations.
Binance has also suspended the trading of LUNA and UST. This was contained in a recent post by the CEO of Binance, Changpeng Zhao. According to Zhao, the decision to suspend the trading of the assets was to protect the investors. He said that this has always been the priority of the exchange. A May 13 Twitter post explains:
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
He alluded to the fact that the exchange usually wouldn’t make comments on cryptocurrency projects. This is ostensibly to avoid unnecessarily influencing the market.
Disappointment With The Terra Team
He however expressed his displeasure at how Terra handled the crisis that affected its ecosystem and coins. CZ as he is fondly called said that the suggestions made by Binance to the Terra team were not acted upon. He said that the Terra team should have burned the “extra minted LUNA” to repeg UST, but didn’t do that. Neither did they acknowledge the suggestions of the exchange.
“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”
The Terra blockchain was halted on Friday, May 13 after the assets issued by the network dropped in value. Its stablecoin had depegged from the dollar, leading to a chain of events that caused investors to dump the coins.
Terra Team Unresponsive And Unaccountable
CZ said that the reaction of the Terra team differs from that of Axie Infinity, which experienced a similar problem but made plans and were accountable to investors. He highlighted the need for effective communication with the right people in times of crisis.
He acknowledged that there may be differing opinions regarding suspending UST and LUNA trading, but maintained that the Binance team believes that it is in the best interest of the investors to do this.