Binance CEO Shares His Thoughts On LUNA And UST Collapse -Breaking
- Changpeng Zhao shared recently his thoughts about the LUNA collapse and UST meltdown.
- Zhao stated that “the team was slow in using their reserves to restore the peg.
- Changpeng claims that the world really began to turn against them when additional LUNA was created in an effort to rescue the situation.
Changpeng Zhao is the Binance CEO. He recently spoke out about the LUNA/UST fallout. According to Zhao, the collapse of Terra’s native tokens could have been avoided if the Luna Foundation Guard (LFG) used its reserves earlier.
Zhao stated that “the Terra team was slow in using their reserves to restore the peg. If they’d used their reserves earlier than the de-peg reached 5%, this could have prevented all of it. They tried to rescue the coin value by using $3 billion, but it had fallen to 99% or $80 billion. Of course, this didn’t work.”
Terra was hit hard by the freefall of the algorithmic UST stabilitycoin, which caused things to go south. It reached lows of…