Changpeng Zhao, Binance’s current CEO, aka CZ has expressed doubts about Terra and its revival plan. He doesn’t believe that this ecosystem’s plan to get back in to the market and launch a new token, LUNA will work.
He also said that he prefers not to predict market trends and what the community might do. CZ said that he is one of the many skeptics who believes that Terra will not be back. This statement was made just after the Terra USD, launched by the ecosystem with the same name collapsed. This collapse left many investors in the lurch and resulted in the loss of millions in savings.
CZ was also critical of the way the team managed the crisis and pinpointed quite a few project flaws which led to the collapse. It must be said that Binance is playing an active role in the Terra recovery process – it is hosting the new LUNA token’s airdrop. CZ also said that the main goal was to ensure that investors had access to their money. That is why he, along with the Binance team are support the recovery plan.
According to him, this fiasco should serve as a warning to others who put their faith in unrealistic and unsustainable business models. Incentives that were too aggressive are not sustainable in the long run. Crypto projects which offer high returns to get new investors should do it in a planned manner so that they will be profitable in the long run. He is of the opinion that to measure revenue, more of it has to be generated and not just an incentive payment.