7 hours ago · 2 min read
Binance › Terra › Stablecoins
Binance CEO does not think LUNA recovery plan will work
CZ says no value can be created from Do Kwon's proposal to fork LUNA to a new version to save the ecosystem
Binance CEO, CZ, has revealed that he does not believe that Do Kwon’s plan to save LUNA will work. Do Kwon announced a proposal to fork LUNA to a new version in order to save the ecosystem on May 13. CZ announced,
“This won’t work. – forking does not give the new fork any value. That’s wishful thinking. – one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).”
He goes on to ask where the LFG held BTC went after it was loaned to market makers. Do Kown has stated that a full report is incoming regarding this and LFG is documenting the use. He asks for “patience” as the team is “juggling multiple tasks at the same time.” CZ also compares the strategy to trying to fork Bitcoin at the ATH and expecting the value to be retained.
Do they really think they can fork BTC at the snapshot on Nov 18, 2021, and the new fork will have the new BTC at $68,000 (the price on that day)?
— CZ 🔶 Binance (@cz_binance) May 14, 2022
CZ also notes that he has never held UST and doesn’t “know it too well,” claiming he is “usually busy with other things, but now dragged into this.” His disdain for Do Kwon and the Terra chain is evident in his recent tweets.
He even posted a link to a dead cat bounce explanation thread on Binance Academy in reference to LUNA jumping after Do Kwon released his proposal.
He also seems to take some credit for the Terra blockchain restarting saying “If we didn’t push the issue, the Terra blockchain may still be in “halted” mode, or worse with super minting…”
No proposal has been selected by validators as of yet but the community continues to debate via the Terra forums.