According to CZ the CEO of Binance , an exponential amount of LUNA was minted due to flaws in the design of the Terra protocol. This resulted into halting deposits or withdrawals as their validators suspended the entire network.
Changpeng Zhao, commonly known as CZ, explained in his tweet that some users of the Binance platform who were not aware of the significant risks had begun to buy LUNA again, which would likely crash the price further.
While maintaining neutrality and acting in the best interest of all the users and industry peers of the Binance platform, CZ broke the rule of not commenting on other projects because of the peculiarity of the situation.
He also expressed his disappointment at the Terra team for the manner in which the UST/LUNA incident was handled, stating that they had not received any positive response on their request to the team to restore the network, comparing them to the Axie infinity team who had a plan, were accountable and communicated proactively with Binance.
CZ addressed the suspension issue saying it was the best way to protect the users at the time. He also stated that the situation will be monitored closely.
Featured Image Source: Outlook India
