Changpeng Zhao, CEO at Binance, shared his two cents on what happened with Luna and clarified some misconceptions.
The CEO of the world’s leading cryptocurrency exchange Binance, Changpeng Zhao (CZ), said that he expects more transparency from Luna’s team following last week’s UST-LUNA fiasco.
- Last week saw a top cryptocurrency literally go to zero in a matter of days.
- UST – Terra’s algorithmic stablecoin – lost its peg and crashed to some $0.225. Because of how the protocol works, this created a massive arbitrage opportunity as users could burn 1 UST and receive $1 worth of LUNA.
- So long as UST was below its peg, traders were able to print LUNA and dump it on the open market in a loop that saw a whopping 6.5 trillion enter circulation in a couple of days.
- Naturally, this crashed the price of LUNA to literally $0 as most of the exchanges delisted the asset.
- One of these exchanges was Binance. Now, CZ took it to Twitter to clarify his position on the matter.
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.