The Binance head criticized the Terra salvation plan
Changpeng Zhao, CEO of major cryptocurrency exchange Binance, criticized Terra management's proposal to save the project using blockchain branching.
As CZ reported on Twitter, Do Kwon's plan to save his Terraform Labs with a fork is doomed to failure. Zhao believes that there is no point in creating an additional chain.
“This won't work. Forking does not give the new fork any value. That's wishful thinking.” - wrote CEO Binance.
Zhao explained that cryptocurrency issuance does not create value but simply "dilutes the share of current holders of the asset." The head of Binance is confident that the incentive is "just a mechanism for the initial stage of cryptocurrency distribution." Should the Luna Foundation have bitcoin reserves, they should be used to buy back USTs first, Zhao believes.
Personal opinion. NFA.— CZ 🔶 Binance (@cz_binance) May 14, 2022
This won't work.
- forking does not give the new fork any value. That's wishful thinking.
- one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).
Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf
Recall that due to the loss of the UST stablecoin peg to the dollar exchange rate, one of the most popular blockchain Terra stopped its work.
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