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 discovered 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 Might 09, 2022.
CZ Seems to be Again On LUNA Crash
CZ tweeted this morning with Bitcoin’s value motion historical past:
A 12 months in the past in the present day, UST/LUNA crashed. $40 billion in worth gone. BTC went from 28k to 19k. A couple of classes might be discovered.
Whereas the LUNA crash occurred a 12 months in the past, the teachings discovered from it are nonetheless related in the present day. Within the wake of the crash, CZ pushed for transparency and consumer safety, stating that Binance would let the Terra mission workforce compensate retail customers first, with Binance being compensated final, if in any respect.
This displays the trade’s present efforts to extend liquidity and shield customers from losses.
Not Neglect The BTC Drop
The crash of LUNA and TerraUSD (UST) not solely worn out $40 billion in worth but additionally brought on 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 strategy.
One option to mitigate the dangers of such crashes is to extend liquidity out there. This can be a problem, particularly within the face of accelerating regulatory scrutiny, however efforts are underway. For instance, the DeFi trade is exploring methods to create extra stablecoins which can be backed by a spread of property, not simply the US greenback.
The teachings discovered from the LUNA crash are nonetheless related in the present day, because the trade grapples with problems with liquidity, interoperability, and consumer safety. The LUNA crash did shock the trade, and CZ’s reflections supply insights into the significance of accountable management within the crypto world.
