CZ Binance Would Like To See Bigger Transparency From Terra’s Team

CZ Binance would like to see bigger transparency from Terra’s team and shared his opinion on what happened with Luna so let’s read more today in our latest cryptocurrency news.

The CEO of the world’s biggest crypto exchange Binance said that he expected some more transparency from Luna’s team after last week’s UST-LUNA fiasco. Last week the cryptocurrency went to zero in a matter of a few days. CZ Binance also said that Axie Infinity handled its crisis better after the Ronin sidechain attack. UST lost its peg and crashed to $0.225 and because of how this protocol works, it created a huge arbitrage opportunity as the users can burn 1 UST and receive $1 worth of LUNA. So long as UST got below its peg, the traders were able to print LUNA and dump it on the market which saw a stunning 6.5 trillion enter into circulation in a few days.

1/8 These past weeks have proven to be a watershed moment for the crypto industry. We have witnessed the rapid decline of a major project, which sent ripples across the industry, but also a new found resiliency in the market that did not exist during the last market downswing.

— CZ 🔶 Binance (@cz_binance) May 15, 2022

This crashed the price of LUNA to $0 as most of the platforms around the world delisted the asset. One of these exchanges was Binance so now CZ took it to Twitter to clarify his position on the matter. CZ noted that Binance didn’t take part in the second round of funding for LUNA and they didn’t acquire most UST so Binance Labs even backed Terra with $3 million back in 2018 before UST became popular. He clarified that the last few days they tried to support the Terra community but Zhao noted that he simply pointed out the potential issues.

In that regard, he wanted to see more transparency from them including speciifc on-chain transactions of the funds and relying on 3^rd party analysis which is not sufficient or accurate and that was supposed to be the first thing that should have happened.

As recently reported, Binance’s Zhao says Axie handled the crisis better and he is disappointed in the way of handling the UST and LUNA collapse. He said the team behind Terra hardly responded to Binance’s request and help them restore the network. Ronin as an Ethereum sidechain developed for the Axie Infinity game got exploited. The hackers were able to drain 173,600 ETH and 25.5 million USDC from the bridge and culminated in one of the biggest hacks in the industry with the total funds surpassing $662 million lost.