It should be noted that cryptocurrency exchange Binance continues to trade LUNA and UST even after the market collapse. The coins are traded exclusively in trading pairs with BUSD, the trading platform’s stabelcoin.

A daily chart of Luna on the Binance exchange

Despite this, the head of Binance does not approve of the actions of the project’s management. He also does not like the idea of creating a fork of Luna without the UST algorithmic stablecoin, because in that case the ecosystem would lose its already sagging reputation and value.

Why the Terra ecosystem collapsed

Above all, Changpen Zhao advocated diversification of investment portfolios and called this strategy the most important solution for market players. However, he himself does not follow this rule.

I am not a good example from an investment point of view. I do not diversify my investment portfolio. I recommend that most people diversify their assets. But as for me, I’m all about Binance.


As a reminder, diversification means diversifying a portfolio, not only in a particular niche, but also in asset classes themselves. For example, a diversified portfolio within cryptocurrencies might be considered a combination of BTC, ETH, AVAX, SOL and other popular wallet projects. However, to diversify as a whole, you also need to add various stocks, precious metals, indices and other traditional financials.

Note that Zhao has repeatedly talked about not holding fiat. If the entrepreneur's statements are to be believed, he holds cryptocurrencies exclusively. At the same time, Changpen himself is the richest representative of the digital asset industry: the last time Forbes estimated his fortune at $65 billion.


According to Decrypt’s sources, the lion’s share of Zhao’s capital consists of Bitcoin and Binance Coin (BNB), the native token of the Binance exchange.

As for the collapsed LUNA, the exchange’s CEO gave several important clarifications. One of them concerned why the platform resumed token trading after a brief pause amid the project’s collapse. Here’s his rejoinder.

We briefly suspended trading when Terra validators suspended the blockchain, although this caused a lot of complaints. But I believe our actions forced the validators to resume network operation within a few hours.

Terra is currently trading on Binance

Zhao also emphasised the comprehensive lack of bias in the market.

Finally, no one is forcing anyone to buy a token just because trading is ongoing. There are buyers with a high-risk strategy willing to enter into a deal with sellers.

Read also: Tether spokesperson revealed what really caused the collapse of the Terra ecosystem.

Unfortunately, the Terra team’s actions to deal with the aftermath of their project’s collapse are not encouraging to Zhao. He had also previously stated that the first drawback of LUNA was that the system could generate an infinite number of new tokens. In his view, “printing money” does not create value, but only “dilutes” existing token holders.

Binance CEO Changpen Zhao

Zhao also noted that Terra had a burgeoning ecosystem, but its growth rate was not commensurate with the measures used to attract new investors. He called this type of growth "empty" and advised investors "not to chase high annual returns alone".

The collapse could allegedly have been prevented if the Terra team had used its bitcoin reserves when the loss of UST parity to the dollar was not yet so critical. Instead, the project developers “waited” for the loss of $80 billion of the crypto market, and then “dumped” their remaining reserves, which were no longer sufficient to fully control the situation, for sale.

Asked about the centralised nature of the Binance Chain blockchain, Zhao said that the small number of validators helped transactions to be faster. He himself is allegedly not a central figure in blockchain management, but is willing to discuss any innovations with his team.

To my limited understanding, there is a trade-off between the number of nodes and performance at this stage of blockchain development.

Changpen Zhao, CEO of Binance

Finally, after a few answers from the Binance CEO, it was about user funds on the platform. Zhao explained that these are never mixed with the company’s own operating funds. In the event of bankruptcy or a similar event, he promised that “funds will be returned to users first and not to shareholders”.


We think the criticism of Terra's representatives is well deserved. But they did allow UST to be untied from the value of the dollar, after which serious problems followed for the project. Well, because the company's employees began to drain the reserves to secure the coin, they also caused damage to the cryptocurrency market as a whole, which in this case ended with nothing. So, it is unlikely to justify the actions of the project's representatives, even if you want to.


Look for even more interesting things in our millionaires’ cryptochat. There we discuss other interesting news related to blockchain and decentralization.