Pointing out the potential issues with forking Terra, CZ said that “Minting, forking, don’t create value.”
Changpeng “CZ” Zhao, the CEO of crypto exchange Binance, recently questioned the concept of hard forking the Terra blockchain as a method to revive the once-thriving Terra (LUNA) and TerraUSD (UST) ecosystems. Following the same an equivalent, CZ discovered his perspective on the acceptable course of action for falling comes across the crypto community.
“This won’t work,” said CZ while dismissing the validators’ plan of a tough forking to TERRA2, which might involve providing a replacement version of Luna to all or any holders based on a snapshot of the holdings before the market collapsed. CZ suggested:
“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.”
Instead, he suggested that the Terra community should initial use its Bitcoin (BTC) reserves to shop for back UST to revive its pegging.
Pointing out the potential problems with forking Terra, CZ said that “Minting, forking, don’t produce price.” However, he recommended shopping for back and burning as a perfect thanks to revive the token’s value. while showing support for the Terra community, CZ highlighted the need for “more transparency from them. Much more!,” about details regarding specific on-chain transactions (transaction IDs) of all the funds:
“Failures can/will happen. But when they do, transparency, speedy communication and owning responsibility to the community is extremely important.”
CZ more processed that Binance had no active investments in Terra, nor did the company acquire any UST holdings, dismissing the ongoing rumors on Crypto Twitter about Binance’s interest in Terra:
“Binance Labs invested $3m USD in Terra (the layer 0 blockchain) in 2018. UST came much later after our initial investment.”
Binance Labs, the investment arm of Binance, invested with in varied comes over the past four years, that in line with CZ, have seen variable degrees of success and failures.
On an end note, CZ hopes Terra will construct itself “in a correct and wise way:”
“Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can.”