Skip to main content

Stablecoin crash: Binance CEO comments on the Terra debacle

 


Things are cracking as Binance CEO Changpeng “CZ” Zhao felt compelled to clarify a few points today. Binance was rumored to be heavily invested in Terra, but he denied it. According to him, Binance Labs made an investment of 3 million US dollars in 2018. It was one of hundreds of investments, as "CZ" further explained.



There were no other investments in LUNA or UST. He also pledged his continued support to the Terra community. Zhao again criticized Terraform Labs CEO Do Kwon's plans. This one seems to be working on reviving Terra so far.


However, a restart seems to be impossible, if only because of the consequences of the catastrophe. Confidence in the stablecoin TerraUSD has finally been destroyed. The case should also internationally ensure that regulatory authorities and politicians feel encouraged to evaluate stablecoins even more strictly and regulate them more harshly.   


CZ finds clear words

The Binance CEO has been harsh on any plans dealing with a reboot of Terra. In his opinion, neither a fork nor a redistribution and reduction of the circulating amount of LUNA makes sense.


This is currently around 6.5 trillion LUNA and was capped by the implementation of a proposal. Shortly thereafter, the LUNA price shot up in the decimal place and proved to be profitable for speculators in the short term.

Zhao called for more transparency from Terra Labs and the Luna Foundation Guard (LFG). There is no official information on how exactly the LFG bitcoin reserve was used. In his view, all means should be used to buy back UST from the market.


Stablecoins are falling into disrepute

Terra wanted to create a decentralized solution for a stablecoin and failed miserably. The problem facing the entire industry is the loss of confidence in the entire stablecoin market.


Other stablecoin solutions are price-fixed or covered by US dollars deposited in the bank or by other assets. As such, they are not subject to the same risks as Terra.


Anyone who attaches particular importance to security in this turbulent phase will probably convert their stablecoins into “hard” euros and transfer them to their bank account. So far, however, there have been no signs of failure in other stablecoins.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands