Binance Chief executive officer Changpeng Zhao, also referred to as CZ, expressed skepticism round the revival arrange for the Terra ecosystem and also the launch from the new LUNA token.
“I do not predict exactly what the community is going to do. […] Most are skeptical. I’m certainly one of individuals guys,” stated CZ within an exclusive interview with Cointelegraph.
Following a collapse of TerraUSD (USD), the Terra ecosystem’s stablecoin, CZ belittled its team because of not handling the crisis correctly and pointed in the project’s flaws that brought towards the crash. Still, Binance has become positively taking part in Terra’s revival plan by hosting the airdrop of their new LUNA token.
As CZ stated, regardless of the prevalent skepticism round the Terra relaunch, Binance includes a responsibility to assist users impacted by the crash of LUNA.
“We still need ensure continuity of people’s use of liquidity. […] We must offer the revival plan wishing that it could work,” he described.
Based on CZ, the Terra fiasco should function as a warning to projects that depend on unsustainable business models according to “aggressive incentives.”
Because he stated, crypto projects for example Terra offer high yields to draw in people hoping that when you will find enough users, they’ll become lucrative.
“We should certainly take a look at these questions fundamental method to measure more revenue, more earnings is generated than simply a motivation payout,” CZ stated.