The CEO of the largest cryptocurrency exchange Binance criticized the proposal of the Terra management to save the project through a blockchain fork.
Changpeng Zhao on Twitter declaredthat Do Kwon’s plan to fork the Terraform Labs he leads is doomed to failure. Zhao believes that creating an additional chain will not be beneficial:
“Won’t work. The fork will not add any value to the new fork. It’s wishful thinking.”
Zhao explained that issuing a cryptocurrency does not create value, but simply “dilutes the share of the current owners of the asset.” The head of Binance is sure that the promotion is “just a mechanism for the initial stage of the distribution of cryptocurrency.” If the Luna Foundation has bitcoin reserves, they should be used first to buy back UST, Zhao said.
Zhao’s tweet came the day after Terraform Labs founder and CEO Do Kwon proposed plan to revive Terra after the crash last week. Kwon proposed forking the Terra blockchain – creating a new chain and distributing 1 billion tokens among interested participants:
“The Terra community must recreate the chain in order to preserve the developer community and ecosystem.”
Recently, the head of the Luna Foundation Guard stated that “the collapse of the UST and LUNA courses broke his heart.” A little earlier, Binance announced the delisting of the LUNA cryptocurrency and the UST stablecoin. On Friday, May 13 at 00:40 UTC, the Terra ecosystem tokens were removed from the margin and spot markets of the exchange. Recall that just a week ago, the LUNA cryptocurrency was trading above $80. On May 13, its rate collapsed to $0.00001, and many investors lost money.
Source: Bits
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