The original Terra ecosystem’s demise sent shockwaves through the crypto world, with major cryptocurrency exchanges coming under fire for offering the failing stablecoin and token in the first place. First and foremost was Binance, the largest cryptocurrency exchange and venue for the now-defunct algorithmic stablecoin TerraUSD (UST).
Do Kwon and his business Terraform Labs have relaunched the Terra network, complete with a new blockchain and Luna currency, in an attempt to breathe new life into the Terra ecosystem.
Even while Kwon and Terraform Labs kept mute, Binance CEO Changpeng “CZ” Zhao was one of the few exchange leaders to express disapproval in Terraform Labs after the UST debacle, noting that his focus is to protect users. Binance, on the other hand, continues to support Terra 2.0, the new Luna token, and is taking part in its airdrop, in which investors were given a “snapshot” of their old token holdings to demonstrate Terra how much they owe in the new system.
Many investors who had lost their whole life savings wondered why Binance would give Kwon another chance. “How is this anything other than irresponsible?” wondered one Twitter user. “I felt @cz binance was emphasizing the need of first and foremost protecting customers.”
Others pondered if Binance profited from the Terra ecosystem’s demise, or if CZ communicated to Kwon as events unfolded, especially as it was revealed that Kwon was supposedly behind the unsuccessful algorithmic stablecoin project Basis Cash, which predates UST.
