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.
Binance CEO Changpeng Zhao tweeted in the early afternoon to provide an update on the serious scenario involving the Terra (LUNA) ecosystem.
We learn that the trade pairings UST/BUSD and LUNA/BUSD have been suspended in particular.
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.
However, as Changpeng Zhao points out, not all users are aware that the LUNA is currently in an endless spiral. Also, in order to limit the damage, the trading of these 2 assets has been suspended on the largest cryptocurrency platform in the world.
But it was short-lived: a few hours later, it was announced that trading in these pairs will resume at 4:30 p.m.
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.
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.
