In the aftermath of last week's historic collapse of Terra’s stablecoin, UST, and native token, LUNA, Binance CEO, Changpeng Zhao has offered his perspective on the blockchain network’s revival plan.
<h2 class="articleTitle font-headline"><strong>Forking Terra Won't Work, According to CZ</strong></h2>
After going under the radar amid the Terra network going into catastrophe, co-founder Do Kwon came up with a new <a href="https://www.cryptoknowmics.com/news/terra-founder-do-kwon-proposes-blockchain-revival-plan" target="_blank" rel="noopener">plan</a> to revive the blockchain ecosystem, two days later.

The idea includes permanently abandoning UST and resetting LUNA to a 1 billion token circulation. The tokens in question will be distributed to both former holders wiped out by last week’s events, and to current holders.

Within hours, Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange, tweeted that such a plan ‘won’t work.’
<blockquote><em>“Forking does not give the new fork any value. That’s wishful thinking. one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges),”</em> CZ wrote in his tweet.</blockquote>
He also pointed out that one cannot simply void all transactions on a blockchain after an old snapshot, especially for trading transactions on crypto exchanges.

https://twitter.com/cz_binance/status/1525448766274289664
<h2><strong>CZ Questions LFG’s Bitcoin Reserves</strong></h2>
In addition to pointing out that hard forking Terra was not a good idea, CZ questioned where the Luna Foundation Guard’s (LFG) Bitcoin went during the depegging of UST.

According to CZ, the Bitcoin should have first been used to buy back UST. He also issued a disclaimer that he was not a current or past holder of UST.

As to the whereabouts, Do Kwon had earlier tweeted that Terra’s team was currently working on documenting the use of the LFG’s BTC reserves during the depegging event.

https://twitter.com/stablekwon/status/1525238422264172544

Binance CEO Believes Terra’s Revival Plan Won’t Work

In the aftermath of the historic collapse of Terra’s UST, and LUNA, Binance CEO, Changpeng Zhao offered his perspective on the network’s revival plan.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Binance CEO Believes Terra’s Revival Plan Won’t Work

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