The Binance boss expressed his dismay at the way Terraform Labs handled the ecosystem’s collapse in a tweet thread. Changpeng Zhao, CEO at Binance (the world’s biggest cryptocurrency exchange), expressed disappointment at the way Terraform Labs dealt with the recent LUNA/UST collapse.
Zhao stated that the Terra network team did not respond to Binance’s request for help to restore the network.
He tweeted, “We asked their team to restore network, burn extra minted LUNA and recover the UST Peg.” “So far we have not received any positive or significant response.”
He compared Terraform’s response to Axie Infinity’s in March 2021 and praised the latter’s accountability.
Changpeng Zhao said, “This contrasts sharply with Axie infinity, where they took accountability, had plans, and communicated with us proactively.” We helped.”
Ronin, an Ethereum sidechain created for the Axie Infinity gaming was exploited on March 23rd.
Hackers were capable of stealing 173,600 Ethereum and 25.5 Million USDC from a bridge. This culminated in one the largest hacks ever, with total funds lost at $622 million.
Terra Collapse
Terra ecosystem is made up of a native token, LUNA, and a native stablecoin, UST. UST is an algorithmic, stablecoin that is governed by smart contracts. LUNA acts as an arbitrage cushion to ensure that UST keeps the dollar peg.
One dollar of LUNA could be exchanged for one dollar of UST, and vice versa. People can trade $1 worth of LUNA to get UST, and then make a profit by selling the newly minted UST.
According to CoinMarketCap data, however, the UST stabilitycoin has fallen in value and is now at $0.15. A huge arbitrage opportunity was created by the sudden drop in the price UST.
This opportunity caused a lot of sell pressure on LUNA, which resulted in it losing 100% in just a week. According to CoinMarketCap, LUNA trades at $0.000024. This is a huge drop from the $119.18 record last month.
The temporary suspension of Terra blockchain was caused by the falling Terra coins. It was restarted recently.
