Changpeng Zhao (CZ), the CEO of Binance, the largest crypto exchange by trading volume, has recently explained why the company decided to resume Terra (LUNA) trading despite the major collapse.
A couple of days ago, Binance announced the suspension of LUNA trading on its platform. The CEO of the crypto exchange later blamed the delisting on validators’ decision to pause Terra blockchain as a measure to get around the issues with the network.
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Why Binance Resumed LUNA Trading
CZ Binance was on Reddit earlier today for a wide-ranging Ask Me Anything (AMA) session, where a variety of topics were discussed, including the Terra blockchain fiasco.
In a response to a question on why Binance resumed the trading of Terra (LUNA), CZ said it was suspended because the network was halted by the validators on the 12th of May 2022. He added that the suspension of LUNA mounted pressure on validators to reactivate the blockchain, which resulted in restoring trading for LUNA.
CZ Binance noted:
“We suspended trading briefly when the validators paused the blockchain, even that caused a lot of complaints. But I believe our action forced the validators to resume the network within a couple of hours.”
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Speaking on the lack of bias in markets, Binance CEO said, “Lastly, no one is forcing anyone to buy just because trading is on. There are high-risk tolerance buyers willing to take over from sellers…The marketplace is neutral.”
Regarding the centralized nature of the Binance Chain, he pointed out that its low validator count helps in achieving faster transactions:
“My limited tech understanding is there is a trade-off between a number of nodes vs performance at this time of our blockchain evolution.”
According to CZ, user funds are never mixed with the company’s operational funds. He said in the event of any bankruptcy, “funds would be refunded to users first, before any shareholders.”
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