• May 27, 2022

Binance’s CZ clarifies its decision to trade LUNA despite the collapse

Binance’s CZ clarifies its decision to trade LUNA despite the collapse

The gigantic crypto collapse caused by Terra (LUNA) left different opinions of various people in the crypto community. Binance’s Changpeng Zhao (CZ) answered some questions about it on Reddit.

The questions included Binance’s decision to trade LUNA despite its collapse and other related doubts.

Earlier, Binance’s CZ had sent out a Twitter Thread detailing the organization’s decision to suspend MOON trading on its platform. CZ also expressed his dissatisfaction with the way the Terra team handled the accident, saying that the team did not respond even though Binance tried to reach out to help.

Moreover, the executive even raised concerns about the planned fork aimed at reviving the Terra network. He stated:

«The most stupid design flaw is to think that minting more than one asset will increase its total value (market capitalization). Printing money does not create value; it simply dilutes existing holders. The exponential coining of LUNA made the problem much worse. Whoever designed this should have their head checked».

CZ is not the only one who opposes the fork. The majority of the Terra community voted against during preliminary voting.

How did Tether maintain stability in the midst of multiple black swan events like the moonfall?

With the market still trying to find a balance after the Terra debacle, Tether published a report on the company’s finances. Tether, the largest stablecoin by market cap, also lost its parity after falling to $0.95. This raised fears of another sell-off, which have since been contained after he regained most of his position.

Tether recently filed the “Consolidated Reserves Report”, which includes the financials of Tether Holdings Limited. The report also covers information related to the company’s subsidiaries in the British Virgin Islands and Hong Kong.

Tether’s technical director Paolo Ardoino also commented on Tether’s performance. He said:

«Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never failed to fulfill a redemption request from any of its verified customers. This latest certification further highlights that Tether is fully backed and that the composition of its reserves is solid, conservative and liquid».

The report added a disclaimer that asset valuations are based on “normal business conditions.”

A phishing scam manages to steal USD 438,000 in cryptocurrencies and NFTs due to a hack to Beeple’s account

The digital artist and popular creator of non-fungible tokens (NFTs) Mike Winkelmann, better known as Beeple, suffered a hack of his Twitter account on Sunday as part of a phishing scam.

Harry Denley, a security analyst at MetaMask, alerted users that Beeple’s tweets at the time containing a link to a giveaway for a Louis Vuitton NFT collaboration were actually a phishing scam that would steal cryptocurrencies from users’ wallets if clicked.

One of the links allowed the scammers to get about $365,000 in ETH and many NFTs from high-value collections, such as Mutant Ape Yacht Club, VeeFriends and Otherdeeds, among others, bringing the total value stolen in the scam to about $438,000.

On-chain data shows that the scammer sold the NFTs on OpenSea and placed their stolen ETH in a cryptocurrency mixer in an attempt to launder the proceeds.

Beeple later tweeted that he had regained control of his account and added as a reminder to his followers that “anything too good to be true IS A FUCKING SCAM.”