Binance CEO Changpeng “CZ” Zhao has given his take on the ongoing crisis at Terraform Labs, which has resulted in both LUNA and UST crashing.
Specifically, CZ said that a hardforking to TERRA2 as a way of providing a new iteration of LUNA to holders as per their pre-crash wallet balances “won’t work.”
Continuing, the crypto billionaire said: “Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin. I don’t own any LUNA or UST either. Just commenting.”
CZ noted that a viable alternative would be for Terra to use its Bitcoin reserves to buy back UST in a bid to return the algorithmic stable coin to its pegging with the US Dollar.
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He also moved to quash speculation that Binance took part in LUNA’s second round of fundraising, and insisted that the company doesn’t own any UST.
“I need to address falsehoods circulating in crypto twitter. Binance did not participate in the 2nd round of Luna’s fund raising nor did we acquire any UST,” CZ said.
“Binance Labs invested $3m USD in Terra (the layer 0 blockchain) in 2018. UST came much later after our initial investment.”
He went on to emphasise that Binance Labs has “invested in hundreds of projects over the last 4 years, including exchange competitors and many competing blockchains.
“A few of them have fallen by the wayside, but a few have been extremely successful. That’s how investments work.”
