On the anniversary of the LUNA crash, Binance CEO Changpeng Zhao (CZ) mirrored on the teachings realized from the occasion, which noticed $40 billion in worth misplaced and Bitcoin’s vital dip. He has been pushing a message of transparency and person safety since his “poor again” tweet, following the crash on May 09, 2022.
CZ Looks Back On LUNA Crash
CZ tweeted this morning with Bitcoin’s value motion historical past:
A 12 months in the past right this moment, UST/LUNA crashed. $40 billion in worth gone. BTC went from 28k to 19k. Just a few classes could be realized.
While the LUNA crash occurred a 12 months in the past, the teachings realized from it are nonetheless related right this moment. In the wake of the crash, CZ pushed for transparency and person safety, stating that Binance would let the Terra mission group compensate retail customers first, with Binance being compensated final, if in any respect.
This displays the trade’s present efforts to extend liquidity and defend customers from losses.
Not Forget The BTC Drop
The crash of LUNA and TerraUSD (UST) not solely worn out $40 billion in worth but in addition induced BTC to drop from 28k to 19k. CZ’s tweet additionally highlights the hazard of emotional buying and selling and the should be strategic and disciplined in a single’s funding strategy.
One method to mitigate the dangers of such crashes is to extend liquidity available in the market. This is a problem, particularly within the face of accelerating regulatory scrutiny, however efforts are underway. For instance, the DeFi trade is exploring methods to create extra stablecoins which are backed by a spread of belongings, not simply the US greenback.
The classes realized from the LUNA crash are nonetheless related right this moment, because the trade grapples with problems with liquidity, interoperability, and person safety. The LUNA crash did shock the trade, and CZ’s reflections supply insights into the significance of accountable management within the crypto world.
The offered content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.
