{"id":571428,"date":"2022-05-20T17:45:40","date_gmt":"2022-05-20T16:45:40","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=571428"},"modified":"2022-05-20T17:45:40","modified_gmt":"2022-05-20T16:45:40","slug":"binance-ceo-luna-ust-incident-avoided-if-the-lfg-used-reserves-when-the-de-peg-was-5","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/binance-ceo-luna-ust-incident-avoided-if-the-lfg-used-reserves-when-the-de-peg-was-5\/","title":{"rendered":"Binance CEO: The Entire LUNA\/UST Incident May Have Been Avoided if the LFG Used Their Reserves when the De-peg was at 5%"},"content":{"rendered":"
Quick take:<\/p>\n
Binance CEO, Changpeng Zhao<\/a>, has shared his thoughts<\/a> on the UST depegging saga and the massive inflation of LUNA that soon followed.<\/p>\n In a very informative article posted on the Binance website, CZ has offered insights on where the Terra team and the Luna Foundation Guard went wrong as they attempted to save UST from depegging.<\/p>\n According to CZ, the entire incident might have been avoided had the Luna Foundation Guard deployed their reserves<\/a> when the UST depeg was at 5%. He also pointed out that only $3 billion in reserves were deployed when UST and LUNA lost value by $80 billion.<\/p>\n Secondly, CZ pointed out that the team at Terra was very slow and infrequent with their communication with the community during the crisis. This, in turn, further eroded any remaining trust the community had in them. CZ went on to recommend that crypto projects should ‘ always communicate frequently with your users, especially in times of crisis.’<\/p>\nThe Luna Foundation Guard Could Have Deployed its Bitcoin Reserves Earlier<\/h2>\n
Terra Team was Slow in Their Communication<\/h2>\n
I Have Mixed Feelings About the Terra Revival Plans – CZ<\/h2>\n