Binance CEO Changpeng Zhao, conveyed that he is sceptic over the revival plan for the Terra ecosystem and the launch of the new LUNA token.
Following the collapse of TerraUSD which is the Terra ecosystem’s stablecoin, he criticized its team for not handling the crisis properly and pointed at the project’s flaws that led to the crash. Still, Binance is now actively participating in Terra’s revival plan by hosting the airdrop of its new LUNA token.
Changpeng Zhao pointed out that despite the widespread scepticism around the Terra relaunch, Binance has a responsibility to help users that are affected by the crash of LUNA.
According to him, the Terra disaster should serve as a warning to projects that rely on unsustainable business models based on aggressive incentives. As he pointed out, that crypto projects such as Terra offer high yields to attract people in the hopes that once there are enough users, they will become profitable.
