Binance CEO explains what should have been done to save the entire market
The CEO of one of the largest cryptocurrency exchanges in the world offered his view on the UST situation and explained the suspension of LUNA and UST transactions from the platform.
Foremost, the main issue that has affected the peg of UST is the excessive amount of LUNA minted because of underlying issues in the Terra protocol. Following the turmoil on Terra markets, validators have suspended the entire network, which basically turned off all of the basic functions of the network. No withdrawals or deposits were possible starting from that moment.
According to CZ, large amounts of LUNA were minted and moved outside of exchanges which stopped deposits, which is why some users thought that the selling pressure was fading and they could buy LUNA in order to reach the break-even point of their position. But the main problem was that with the opening of the deposits and the pressure to sell, the pressure would return to the markets, causing a continuous decline.
CZ added that he is disappointed with the handling of the situation by UST and LUNA management. Binance requested that they restore the network, burn the excessively minted LUNA and recover the peg, but no response had been received from Terra’s side.
CZ also added that other companies and projects like Axie Infinity acted professionally in similar situations as UST as they took responsibility and provided a plan which led to immediate action on their part in more help from Binance.
At press time, Luna and UST deposits and withdrawals are blocked on the exchange, as the stability of the currency still remains questionable after Luna hit $0.00001, which is 100% of the price we saw only a week ago. UST still fails to reach $1 and trades at $0.17.
