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Saturday, February 4, 2023

CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First

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CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First – Changpeng Zhao (CZ), the CEO of Binance, has stated that the exchange supports the plan to reward retail LUNA users before larger investors. He also stated that the LUNA tokens Binance got in exchange for a $3 million Terra investment have not been sold or moved.

Binance CEO Changpeng Zhao (CZ) responded to criticism about his exchange’s treatment of LUNA tokens by tweeting that any compensation for LUNA holders should prioritize serving the interests of retail users. Binance has already taken the initiative by choosing to be compensated last, according to him.

Also Read: Coinbase Ventures Backed Startup to Build Pan-African Crypto Exchange With $23 Million Capital Raise

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Zhao disclosed to his followers that Binance has received 15 million LUNA tokens in exchange for a $3 million investment in a recent Twitter thread in which he tackles the controversy around the LUNA token fall. The LUNA, which previously had a market cap of $1.6 billion, “still remains on the address we received at,” according to Binance’s CEO. “Never moved or sold.”

Likewise, the 12,000,000 UST Binance earned through staking are still at the same address, according to Zhao. These, he explained, had never been moved or sold.

Despite holding large quantities of both LUNA and the UST stablecoin, Zhao stated that the Binance team has agreed to a proposal to compensate retail consumers first.

He said:

“Now comes the crucial phase. To set a good example for PROTECTING USERS, Binance will let this slide and ask the Terra project team to compensate retail users first, then Binance, if at all possible. Binance totally supports this suggestion (after a 5-minute discussion).”

Some of CZ’s followers reacted angrily to CZ’s support for a compensation plan offered by a Twitter user known as Persian Capital, claiming that this strategy was wrong since it would affect people who had significantly invested in LUNA. 

Also Read: Independent Russian News Site Meduza Raises Over $200000 in Crypto

SEIF Motawi, a Twitter user, stated:

“This is completely wrong. What about those who put their life savings into LUNA and have lost everything? “Are they not also deserving of compensation?”

However, other people who claim to have lost funds applaud Binance CEO’s position, but wonder if this approach can be implemented.

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