JAKARTA – The founder of the Binance crypto exchange, Changpeng Zhao or commonly known as CZ, answered questions from the crypto community regarding LUNA/UST. CZ revealed his statement in an article published on the Binance blog.
“The dumbest design flaw is thinking that printing more assets will increase their total value (market cap). Printing money does not create value; it only weakens the existing holders,” said CZ.
“Printing LUNA exponentially makes matters a lot worse. Whoever designed this should have his head checked,” he said.
The Binance boss added that the collapse of LUNA/UST was due to confusion over the concept of “income”.
According to Coincu, revenue as revenue should be more than expenses but it is possible that the project team included the token sale and their valuation in the revenue and this is the wrong approach on their part.
During an Ask Me Anything (AMA) question and answer session on Reddit, CZ was asked by several people pointing to Binance's EARN UST product. He emphasized that it was previously Secure and backed by Fiat. Changpeng Zhao frankly stated that they made a mistake.
In FAQ (frequently asked questions) 8, the Binance boss says that “LUNA/UST is not a scam, it just has a stupid design flaw.”
Until now, voting for the submission of the Terra hard fork proposal is still ongoing and will end on May 25, 2022. In the proposal, the current coin Terra (LUNA) will change to Luna Classic (LUNC) and the new branch will become Terra (LUNA).
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