Changpeng Zhao, the CEO of the Binance platform, deviated from his normal impartiality and did not hesitate to criticize Terra teams’ disastrous management technique (LUNA).
Furthermore, spot trading in the UST/BUSD and LUNA/BUSD pairings was momentarily halted for a portion of the afternoon.
We learn that the trade pairings UST/BUSD and LUNA/BUSD have been suspended in particular.
1. At #Binance we prioritize user protection. We made the decision to suspend LUNA and UST trading. Here’s why.
A thread 👇
— CZ 🔶 Binance (@cz_binance) May 13, 2022
Changpeng Zhao notes a first issue: an exponential number of LUNA tokens were issued (minted) following the UST’s deeper (loss of benchmark value), resulting in a reduction in its market value.
This is also why the two cryptocurrencies are dragging each other into a bottomless pit: the LUNA will continue to lose value as long as the UST has not regained its one-dollar worth.
In short, the quantity of LUNA tokens in circulation surged by +49,293 percent in a week.
As a result, there is a huge discrepancy between the CEO’s assertion and that of the platform, especially because no more clarity has been offered.