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On the anniversary of the LUNA crash, Binance CEO Changpeng Zhao (CZ) mirrored on the teachings discovered from the occasion, which noticed $40 billion in worth misplaced and Bitcoin’s vital dip. He has been pushing a message of transparency and person safety since his “poor again” tweet, following the crash on May 09, 2022.

CZ Looks Back On LUNA Crash

CZ tweeted this morning with Bitcoin’s value motion historical past:

A 12 months in the past in the present day, UST/LUNA crashed. $40 billion in worth gone. BTC went from 28k to 19k. Just a few classes will be discovered.

While the LUNA crash occurred a 12 months in the past, the teachings discovered from it are nonetheless related in the present day. In the wake of the crash, CZ pushed for transparency and person safety, stating that Binance would let the Terra undertaking staff compensate retail customers first, with Binance being compensated final, if in any respect.

This displays the business’s present efforts to extend liquidity and shield customers from losses.

Not Forget The BTC Drop

The crash of LUNA and TerraUSD (UST) not solely worn out $40 billion in worth but additionally triggered BTC to drop from 28k to 19k. CZ’s tweet additionally highlights the hazard of emotional buying and selling and the must be strategic and disciplined in a single’s funding method.

One method to mitigate the dangers of such crashes is to extend liquidity out there. This is a problem, particularly within the face of accelerating regulatory scrutiny, however efforts are underway. For instance, the DeFi business is exploring methods to create extra stablecoins which can be backed by a spread of belongings, not simply the US greenback.

The classes discovered from the LUNA crash are nonetheless related in the present day, because the business grapples with problems with liquidity, interoperability, and person safety. The LUNA crash did shock the business, and CZ’s reflections supply insights into the significance of accountable management within the crypto world.

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