A few days ago, the Binance cryptocurrency exchange announced the permanent suspension of transactions on UST/USD and Terra (Luna), with only payments from these cryptocurrencies remaining allowed.
Changpeng Zhao, the CEO of the crypto exchange, regrets these circumstances since, in his opinion, the Terra network was one of the most important initiatives in the crypto business. However, the collapse has lowered trust throughout the industry.
Binance spent $3 million in Terra’s development in 2018. However, as the CEO said, this was simply one of hundreds of initiatives in which the exchange was involved:
“Binance however did not participate in the 2nd round of Luna’s fundraising, nor did we acquire UST. Binance Labs invested $3 million in Terra (layer 0 blockchains) in 2018 UST only came much later, after our investment.
Binance Labs has invested in hundreds of projects over the past 4 years, including “competitors” from the stock exchange and many other blockchains. Some have been left behind, but others have been extremely successful. That’s how investments work.”
From his perspective, it is now critical to Terra’s future that a lifeline be offered to Luna investors. But only if Luna’s supply is significantly diminished is this conceivable. As Zhao noted, the two options for dealing with surplus supplies are buyback and incineration.
“Ces derniers jours, nous nous sommes efforcés de soutenir la communauté Terra. Dans mes tweets, j’ai tout simplement souligné les problèmes potentiels qui se posent selon moi. Le minting et le forking ne créent pas de valeur. Le rachat et l’incinération le sont, mais cela nécessite de l’argent. Des fonds dont l’équipe de projet n’a peut-être pas la possibilité de disposer”.
