The chief executive officer of the Binance crypto exchange shared his opinion on the current market situation due to the UST & Luna coin.
Binance is a first ranked crypto exchange because of its quality crypto services, which remain always much helpful for the pro & beginner crypto traders. Binance has its hand in almost every type of financial business, with an effort to make Binance a complete pack of financial services.
On 12 May, Changpeng Zhao, CEO of Binance exchange, took to Twitter to respond to the current situation of the crypto market and said that we have to respect this situation as a usual cycle of pump and dump.
On the UST coin, Zhao said that we are in the innovational phase of this crypto market and here UST was one of the parts of this innovation, which faced failure.
“We are in a new market, with many innovations. Algo stable coins are one of them. When they are hot, they are all the rage. When they drop, it can be a vicious circle. Some innovations will become successful, many won’t.”
For the other crypto projects & startups, Binance CEO suggested working on real fundamentals-based concepts to go with the long run, instead of short-term goals & promotional strategies.
Further Zhao wrote that we should respect this situation and we should now move on toward day by day stepwise development work and we have to leave everything on time and market.
UST & Luna coin
Terraform Labs powered UST stable coin & native coin Luna are integrated through an algorithm to make UST stable coin value equal to $1.
couple of months ago, to reserve collateral funds behind the UST coin, Terraform Labs started to collect significant amounts of Bitcoins. When the price of Bitcoin faced significant correction then in that situation, UST stablecoin users came into fear, which further resulted in huge sell pressure.
According to reports, the Terra project team tried to sell Bitcoins to back UST but failed, and also due to the high amounts of Bitcoin sold by Terraform Labs, Bitcoin faced a very big dump.