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 vital 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 Appears Again On LUNA Crash
CZ tweeted this morning with Bitcoin’s worth motion historical past:
A 12 months in the past at this time, UST/LUNA crashed. $40 billion in worth gone. BTC went from 28k to 19k. A number of classes may be discovered.
Whereas the LUNA crash occurred a 12 months in the past, the teachings discovered from it are nonetheless related at this time. Within the wake of the crash, CZ pushed for transparency and consumer safety, stating that Binance would let the Terra venture group compensate retail customers first, with Binance being compensated final, if in any respect.
This displays the business’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 induced BTC to drop from 28k to 19k. CZ’s tweet additionally highlights the hazard of emotional buying and selling and the should be strategic and disciplined in a single’s funding method.
One solution to mitigate the dangers of such crashes is to extend liquidity out there. It is 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 spread of belongings, not simply the US greenback.
The teachings discovered from the LUNA crash are nonetheless related at this time, because the business grapples with problems with liquidity, interoperability, and consumer safety. The LUNA crash did shock the business, and CZ’s reflections provide insights into the significance of accountable management within the crypto world.
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