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Binance CEO Says Terra (LUNA) Should Be Bought Back Or Burned To Create Value, Confirms Exchange Doesn’t Hold UST

Binance CEO claims that the exchange holds no UST and that the Terra team should burn LUNA to help the price rebound.

News Headlines

  • Luna is on the demand zone
  • Investors should be ready to buy as the exchange doesn’t hold UST

Terra Luna and UST have had a rough week as the cryptocurrency’s price has plummeted.

Within days, the coin had lost over 95% of its value. While several crypto exchanges, such as Binance, allowed Luna trade before suspending it, many people are concerned about investing in this cryptocurrency.

In a recent tweet, Binance’s CEO stated that he was under pressure from crypto Twitter to reveal whether the exchange had any UST. He stated that he approached his Binance team to inquire if the company had invested in UST.

Terra Luna and UST have had a rough week as the cryptocurrency’s price has plummeted.

Within days, the coin had lost over 95% of its value. While several crypto exchanges, such as Binance, allowed Luna trade before suspending it, many people are concerned about investing in this cryptocurrency.

In a recent tweet, Binance’s CEO stated that he was under pressure from crypto Twitter to reveal whether the exchange had any UST. He stated that he approached his Binance team to inquire if the company had invested in UST.

Binance appears to have no UST other than what it receives in trading fees. Every transaction on the exchange, as is customary, incurs a modest cost, but the value of the UST Binance held as a result of the fee deduction is nearly nothing. CZ said:

“I’m sure we have plenty from trading costs.” Probably close to zero currently. (Imagine it as free trading in the past.) This was simply not in my thoughts. That is not how we prioritize. “Users come first.”

Binance CEO acknowledged that the company invested $3 million in Terra (LUNA) in 2018. Binance Labs has invested in hundreds of projects, some of which have failed and others which have succeeded, as is the case with any investment.

The CZ confirms that Binance did not participate in the second round of Luna’s UST funding.

“Neither Binance nor UST were acquired in the second round of Luna’s fundraising. In 2018, Binance Labs invested $3 million in Terra (layer 0 blockchains). After our initial investment, UST arrived significantly later.
Over the previous four years, Binance Labs has invested in hundreds of initiatives, including exchange “competitors” and other “competing” blockchains. A few have failed, while others have been highly successful. That’s how it works with investing.”
The CEO then went on to voice his anxiety about Terra’s demise (Luna). He added that the crypto network was one of the industry’s primary projects. The network failure had repercussions throughout the business.

While the market’s crash was unwelcome, the CEO believes it has revealed a new level of fortitude that has allowed the market to weather the ripple effects. CZ was eager to point out that the market had not seen such vigor in a long time.

“The crypto sector has reached a tipping point in the last several weeks. We’ve seen a large project fall apart quickly, causing tremors throughout the sector and a newfound resiliency in the market that didn’t there during the last market downturn.”

Trying My Best To Help The Luna Community

Binance CEO stated that his staff has made every effort to assist the Terra community. To further protect the community, the exchange recently healed deposits. A crucial flow in the Terra protocol appears to have minted a large quantity of LUNA.

Users on Binance who continued to acquire Luna despite the information that a big number of coins had been generated will be heavily hurt when the price plummeted as large quantities of newly minted coins entered exchanges.

“Over the last few days, we’ve made a concerted effort to assist the Terra community. In my tweets, I’m only highlighting potential difficulties based on my knowledge. Value is not created by minting or forking. Buying back and burning is possible, but it takes money. Funds that the project team may be missing.”

The Heartz Team

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