Changpeng Zhao: Fork Terra is doomed to failure – Bits Media

The General Director of the largest cryptocurrency exchange of Binance criticized the proposal of the Terra leadership to save the project through branching of the blockchain.

Changpeng Zhao (Changpeng Zhao) On Twitter said, that the plan is to Kvon (Do Kwon) to save Terraform Labs led by him using Forka is doomed to failure. Zhao thinks, that the creation of an additional chain will not bring benefits:

“It won't work. The branching will not give a new fork any value. This is the acceptance of what is desired for the actual ".

Zhao explained, that the release of cryptocurrency does not create values, but simply "dilutes the share of the current owners of the asset". The head of Binance is sure, that encouragement is “just a mechanism for the initial stage of cryptocurrency spread”. If Luna Foundation has bitcoins reserves, They must be used first to buy UST, He believes Zhao.

Hazhao tweet appeared the day after, As the founder and general director of TerRaForm Labs, to Kwon proposed a Terra revival plan after collapse last week. Kwon proposed to branch the Terra blockchain - create a new chain and distribute 1 billion tokens among interested participants:

“Terra community should recreate the chain, To save the community and ecosystem of developers ".

Recently, the head of Luna Foundation Guard said, that "the collapse of the UST and LUNA courses broke his heart". A little earlier, Binance announced the delisting of cryptocurrency Luna and Stablecoin UST. On Friday 13 May in 00:40 According to the worldwide coordinated time, Terra ecosystem tokens were removed from the margin and spot markets of the exchange. Recall, Just a week ago, Luna cryptocurrency was selling above $80. 13 May her course collapsed to $0.00001, and many investors lost money.