Wednesday, September 27, 2023

CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First – Featured Bitcoin News

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Binance’s Changpeng Zhao (CZ) has said the exchange supports the proposal to compensate retail LUNA users ahead of larger investors. He also said the LUNA tokens received by Binance in exchange for a $3 million investment in Terra have not been sold or moved.

Binance’s LUNA Tokens Not Sold

After his exchange faced criticism for its handling of LUNA tokens, Binance CEO Changpeng Zhao (CZ) tweeted that any compensation for LUNA holders must prioritize protecting the interests of retail users. He said Binance has already taken the lead by electing to be compensated last.

CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First

In the latest Twitter thread wherein he addresses the controversy surrounding the LUNA token crash, Zhao revealed to his followers that Binance had received 15 million LUNA tokens in exchange for an investment of $3 million. According to the Binance boss, the LUNA, whose value once peaked at $1.6 billion, “still sits on the address we received at. Never moved or sold.”

Likewise, the 12,000,000 UST that Binance gained from staking over time, are also still sitting at the same address, Zhao said. He claimed these have never been moved or sold.

LUNA Users’ Reaction

Despite holding significant amounts of both LUNA and the UST stablecoin, Zhao said the Binance team had agreed with a proposal to prioritize compensating retail users first. He said:

Now the important part. To lead by example on PROTECTING USERS, Binance will let this go and ask the Terra project team to compensate the retail users first, Binance last, if ever. Binance (after a 5 min discussion) fully support this proposal.

Reacting to CZ’s endorsement of a compensation plan that was initially proposed by a Twitter user known as Persian Capital, some of the Binance CEO’s followers insisted this approach was wrong because it would place at a disadvantage those heavily invested in LUNA. The Twitter user named SEIF Motawi said:

“This is extremely wrong. What about the ones who invested money in LUNA and all of their life savings are now gone? Are they not worth being compensated as well?”

Another user, Veronica, remarked: “Brilliant! So those of us who bought UST or luna and sent it to Binance, or Metamask, or another platform, for example, got screwed. Make the rich get richer and the poor get poorer! great job.”

However, some users who claim to have lost funds are praising the position taken by the Binance CEO, but ask if this proposal can be implemented.

What are your thoughts on this story? Tell us what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Grey82

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