In a recent blog post, Binance CEO Changpeng “CZ” Zhao expressed his thoughts on the infamous and turbulent crash of Luna & UST. As part of the breakdown, CZ remarked that every aspect of Terra’s revival plan is flawed in some way.

Changpeng Zhao points out flaws within the Core System

Binance CEO CZ said that it was a mistake for Binance to believe that increasing the value of the UST stablecoin by minting more UST or allowing infinite LUNA tokens to criculare could somehow raise its value. CZ said: “Printing money does not create value, it just dilutes the existing coin holders”.

Terra CEO Do Kwon allegedly staked more funds to support UST in case of additional volatility. This did not help matters due to the absence of exit liquidity. It’s assumed that Terra wasn’t even able to back the stablecoin with its BTC holdings.

According to CZ the smart decision would have been to use Terra’s BTC reserves while depegging was only 5%. In reality, Terra’s decision makers waited until the company was close to $80 billion down, and only then tried to stage a recover with $3 million. To Changpeng Zhao, the exacerbated the crumbling trust of investors has been a direct result of Terra’s lack of open communication.

Luna & UST Still Near Rock Bottom

Terra’s coins have taken a beating, and the initiated revival plans have yet to bear fruit. CoinGecko reports that Luna’s trade value has fallen to $0.00018946 at press time. On a positive note, that’s 18812.7% more than it was valued at 10 days ago, when Terra (LUNA) plummeted to an all time low.

However, Terra (UST) stablecoin is now trading at $0.066359 as it lost its peg 10 days ago. This is only slightly more than 2 cents off its previous low.

Continue reading on DailyCoin