Binance CEO does not believe in the future of Luna token

Binance CEO Changpeng Zhao is skeptical about the revival of the Terra ecosystem and the successful launch of the new LUNA token.

Earlier, the company’s CEO criticized the Terra team for failing to properly handle the collapse of the TerraUSD (UST) stablecoin. In addition, Changpeng Zhao pointed out the shortcomings of the project that led to its failure.

Despite previous statements that the token rescue plan would fail, Binance is now actively involved in Terra’s relaunch, having organized the airdrop of its new LUNA token and brought back trading (albeit in the exchange’s innovation zone, where high-risk assets are traded).

According to Zhao, despite the fact that few people believe in a successful ecosystem restart, Binance is responsible for helping users affected by the LUNA crash. He explained that the exchange has to ensure that people have continuous access to liquidity and therefore supports Terra’s revival plan, hoping that it will work.

The Binance executive added that some crypto projects promise high returns to attract users, counting on their own profitability in the future once the project has enough audience. However, the Terra fiasco should serve as a warning to anyone who believes in projects with such business models.

As a reminder, Binance will launch an investigation into fraud by the Luna token team. The CEO of the crypto exchange asked an internal investigation team to look into the accusations of Twitter insider FatMan against Terraform Labs.