Binance CEO CZ On Lessons From LUNA Crash, BTC Drop
On the anniversary of the LUNA crash, Binance CEO Changpeng Zhao (CZ) mirrored on the teachings realized from the occasion, which noticed $40 billion in worth misplaced and Bitcoin’s important dip. He has been pushing a message of transparency and consumer safety since his “poor again” tweet, following the crash on Could 09, 2022.
CZ Seems to be Again On LUNA Crash
CZ tweeted this morning with Bitcoin’s worth motion historical past:
A 12 months in the past at the moment, UST/LUNA crashed. $40 billion in worth gone. BTC went from 28k to 19k. A couple of classes may be realized.
Whereas the LUNA crash occurred a 12 months in the past, the teachings realized from it are nonetheless related at the moment. Within the wake of the crash, CZ pushed for transparency and consumer safety, stating that Binance would let the Terra mission staff compensate retail customers first, with Binance being compensated final, if in any respect.
This displays the business’s present efforts to extend liquidity and defend customers from losses.
Not Neglect The BTC Drop
The crash of LUNA and TerraUSD (UST) not solely worn out $40 billion in worth but in addition prompted BTC to drop from 28k to 19k. CZ’s tweet additionally highlights the hazard of emotional buying and selling and the have to be strategic and disciplined in a single’s funding method.
One method to mitigate the dangers of such crashes is to extend liquidity available in the market. This can be a problem, particularly within the face of accelerating regulatory scrutiny, however efforts are underway. For instance, the DeFi business is exploring methods to create extra stablecoins which can be backed by a variety of property, not simply the US greenback.
The teachings realized from the LUNA crash are nonetheless related at the moment, because the business grapples with problems with liquidity, interoperability, and consumer safety. The LUNA crash did shock the business, and CZ’s reflections supply insights into the significance of accountable management within the crypto world.