Following the latest fiasco, Binance CEO CZ expresses skepticism about the relaunch of the Terra blockchain and its new LUNA token.
Binance CEO Changpeng Zhao, also known as CZ, expressed skepticism about the Terra ecosystem’s revival plan and the launch of the new LUNA token.
“I try not to predict what the community will do. […] Many are skeptical. I’m one of those guys,” said CZ in an exclusive interview with Cointelegraph.
Following the demise of TerraUSD (USD), the Terra ecosystem’s stablecoin, CZ chastised its team for failing to handle the crisis properly and pointed to flaws in the project that contributed to the crash. Nonetheless, Binance is now actively supporting Terra’s revival plan by hosting an airdrop of its new LUNA token.
According to CZ, despite widespread skepticism about the Terra relaunch, Binance has a responsibility to assist users affected by the LUNA crash.
“We still need to ensure continuity of people’s access to liquidity. […] We have to support the revival plan hoping that it may work,” he explained.
The Terra debacle, according to CZ, should serve as a wake-up call to projects that rely on unsustainable business models based on “aggressive incentives.”
As he pointed out, crypto projects like Terra offer high yields in the hopes that once there are enough users, they will become profitable.
“We should really look at them in a fundamental way to measure that more revenue,
more income is generated than just an incentive payout,” CZ pointed out.
Source : Cointelegraph