In an amusing tweet, the CEO of Binance expressed: “Poor Again” in relation to the big losses. But despite this, Zhao said that he still wants retail traders who lost money during the Luna crash last week to be reimbursed before Binance does.
“To lead by example in protecting users, Binance will let this slide and ask the Terra project team to compensate retail users [sic] first, Binance last, if ever,” Zhao wrote in a tweet.
Last week, Terraform Labs’ UST algorithmic stablecoin, which was theoretically pegged to the price of the US dollar, sank to around 13 cents.. As a result of the crash, Luna, the cryptocurrency that was meant to help the UST stablecoin maintain its peg to the dollar, also crashed. Luna went from trading at a high of around $119 last month to being worth a mere fraction of a penny.
Binance has been a key supporter of the company that Luna created, Terraform Labs, for years. Binance’s investment arm was a lead investor in a $32 million funding round in 2018 that Terraform Labs said at the time was aimed at building a “modern financial system on the blockchain,” according to VentureBeat. . But the relationship between Terraform Labs and Binance has not been so rosy lately.
Zhao said last week that he was “very disappointed” with how the team behind Luna and UST handled the meltdown. When Terraform Labs CEO Do Kwon said that he wanted to fork Terra, or create a new blockchain and distribute millions of tokens in a new cryptocurrency to followers, Zhao was blunt with his opinion. “This will not work,” he said in a tweet.
In a separate tweet last Friday, Zhao said of the Terra team: “So far, we haven’t received any positive response, or much response.” Both the UST and Luna crashes caused heavy losses to small investors, some of whom expressed their despair on social media last week.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
