ICYMI: Changpeng Zhao argues that Terra's $LUNA and $UST were not scams, and that the problem lies with the developers Terra Binance
Prior to the AMA session, CZ published an article, breaking down the whole situation, especially after receiving a deserved heaping of criticism coming from users who used Binance's UST staking offering on the platform.The major flaw, according to CZ, was the mechanism that implied that minting more UST would somehow increase its total value. The mechanism criticized by CZ was the core of the whole Terra/Luna ecosystem, which allowed for keeping the peg of UST up.
But due to a flawed pegging mechanism and problematic"backing with volatile assets" idea, UST could not hold up its peg and tumbled against the increased selling pressure and lack of exit liquidity. Reportedly, LFG even failed to immediately back its stablecoin with BTC holdings as market makers were not able to provide enough liquidity right away.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Any Potential Recession Will Be ‘Light,' Qatar Investment Authority CEO SaysThe QIA, which manages $450 billion in assets, is ranked as the world’s ninth-largest sovereign wealth fund.
Read more »
Bentley’s First EV Will Rocket From Zero to 60 MPH in 1.5 Seconds, the CEO SaysThe EV could become the fastest accelerating production car of all time vehicle when it debuts.
Read more »
Abbott CEO apologizes for the formula shortage as the first overseas shipment arrives'We're sorry to every family we've let down,' wrote CEO Robert Ford. The shuttered plant at the heart of the shortage will reopen in June, but it may take months before production is back to normal.
Read more »
‘We're Sorry' for U.S. Baby Formula Shortage, Abbott CEO Ford Says in Washington Post Op-EdThe apology by Abbott’s CEO came after President Joe Biden signed a new law to deal with the baby formula shortage.
Read more »
Airbnb’s Billionaire CEO Is Giving The Obama Foundation $100 Million For Travel-Focused College ScholarshipsStudents will get a $10,000 stipend and free Airbnb housing to travel and work between their junior and senior years of college.
Read more »
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years ProbationJUST IN: Former BitMEX CEO Arthur Hayes was sentenced to two years probation, with home detention for six months with location monitoring in a New York court on Friday. cheyenneligon reports
Read more »