When stablecoin Luna plummeted from $80 to below $0.002, it was a tumble that sent shockwaves through the cryptocurrency world, causing liquid cryptos such as Bitcoin and Ethereum to crash and leading to a monumental loss of people’s life investments and savings.
Initially marketed as a safe haven in a highly volatile market, recent events have proven that stablecoins are just as volatile as other cryptocurrencies.
Binance, the world’s largest crypto exchange is among many that suffered from the crash of Terra’s UST and its sister cryptocurrency Luna.
The crypto exchange platform saw its Luna tokens worth $1.6 billion crash to a devastating low of about $2,391. This can only have a devastating consequence for traders and investors on the platform.
However, despite these losses, Binance CEO Changpeng Zhao has expressed his desire for retail traders to be reimbursed for their losses.
In his tweet earlier this week, Zhao wrote “to lead by example on PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate the retails [sic] users first, Binance last, if ever.”
Binance has been a key supporter of the Terraform Labs, the parent company of Luna, leading a $32 million investment round in 2018 in support of building a modern financial system on the blockchain. However, it seems this budding relationship has soured following how poorly Terraform Labs handled the collapse of Luna and UST.
Binance’s campaign to compensate its users comes on the heels of a proposal suggested by a Twitter user to “refund 100% of funds to the poorest 99.6% of wallets who lost money from the UST crash”. Other notable crypto figures have also pledged millions of dollars so the poorest UST holders can be reimbursed.
Leave a Comment