Binance CEO Responds to LUNA Rescue Plan

Binance CEO Changpeng Zhao has commented on Terra (LUNA) founder Do Kwon’s plans. He does not expect the plans to get LUNA and UST back on their feet, Zhao said in a tweet.

Terra (LUNA) plan is wishful thinking

The new plan is to hard fork and then distribute 1 billion tokens to Terra’s stakeholders. While this sounds good of course, in practice it’s a different story. Zhao, the CEO of the world’s largest cryptocurrency exchange, tweeted:

“Personal opinion. No financial advice.

This will not work.
– forking gives no value to the new fork. That’s wishful thinking.
– one cannot cancel all transactions after an old snapshot, both on-chain and off-chain (exchanges).

Where is all the BTC that should have been used as reserves?”

In a reply to one of his followers, Zhao tries to clarify his position with Bitcoin (BTC): “Do they really think they can fork BTC from the snapshot on November 18, 2021, and that the BTC on the new fork will be a worth $68,000 (the price on that day)?” A fork is the splitting of the blockchain. In this case, the Terra blockchain would thus split into a new blockchain from a moment in the past.

Based on the blockchain data, you could argue that nothing happened after this split. But that is quite complicated considering all the transactions that have been done since then. In addition, the image of UST and LUNA is of course seriously damaged. In short, according to Binance’s CEO, this will not restore value.

Bitvavo responds to LUNA debacle

It has been all hands on deck in the crypto market for the past few days. The Terra blockchain was shut down a number of times and exchanges had to make drastic decisions as a result.

The Dutch trading platform Bitvavo decided earlier to stop trading in LUNA and to accommodate LUNA owners. Trading in LUNA has now resumed on Bitvavo.