Changpeng Zhao (CZ), the CEO of Binance, who is the richest man in the crypto industry, has expressed his disappointment in the team behind the recently delisted digital tokens, Terra (LUNA), and TerraUSD (UST).
In a series of tweets a few hours ago, CZ Binance voiced his disappointment regarding the way the Terra team handled the situation amid the disastrous collapse of the ecosystem, which is the reason why Binance delisted the two tokens.
According to CZ, Binance suspended the trading of the two digital currencies to protect users after Terra validators decided to halt the blockchain, an action that has played out twice within the last 24 hours.
CZ explained that some users who are unaware of the large amounts of newly minted LUNA outside the exchange started to buy the crypto again, not knowing that its price will crash further as soon as the network resumes.
CZ tweeted, “At Binance we prioritize user protection. We made the decision to suspend LUNA and UST trading. Here’s why.”
1. At #Binance we prioritize user protection. We made the decision to suspend LUNA and UST trading. Here's why.
A thread 👇
— CZ 🔶 Binance (@cz_binance) May 13, 2022
CZ Binance explained further as follows:
“An exponential amount of new LUNA were minted due to flaws in the design of the Terra protocol. Their validators have suspended their entire network, resulting in no deposits or withdrawals possible to or from any exchange.
“Some of our users, unaware of the large amounts of newly minted LUNA outside the exchange, started to buy LUNA again, without understanding that as soon as deposits are allowed, the price will likely crash further. Due to these significant risks, we suspended trading.
“While Binance always aims to be neutral, helpful and protective of all users and industry peers, and we typically refrain from commenting on other projects, I will break that rule this time.
“I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra “team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response, or much response at all.
“(This is in sharp contrast to Axie Infinity, where the team took accountability, had a plan, and were communicating with us proactively. And we helped.)
“We know there are different opinions in the community, we felt suspending trading is the best way to protect our users at this time. We will continue to monitor the situation closely 24/7. All actions will be announced on Binance.”