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

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

Binance’s LUNA Tokens Not Sold

Changpeng Zhao, Binance CEO (CZ), tweeted after his exchange was criticised for handling LUNA tokens. He said that compensation must be prioritized to protect the retail interests. Binance had already chosen to be paid last, he said.

Zhao disclosed to his Twitter followers, in the latest thread addressing the controversy around the LUNA token crashes that Binance received 15 million LUNA coins for an $3 million investment. 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.”

Zhao also stated that Binance’s 12,000,000 UST, which he earned by staking, is still at the exact same address. These were never sold or moved, he claimed.

LUNA Users’ Reaction

Zhao claimed that Zhao had significant amounts both of LUNA as well the UST stablecoin and said that the Binance team agreed to a proposal for compensating first retail users. He added:

The important part is now. Binance is willing to lead the way on PROTECTING USERS and will ask Terra team members to reimburse retail users first and Binance second, if at all. This proposal was fully supported by Binance after a five minute discussion.

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. A Twitter user called SEIF Motawi said:

“This is extremely wrong. Are you talking about people who have invested their money in LUNA? All of their financial savings and life are gone now? Are they not worth being compensated as well?”

Another user, Veronica remarked: “Brilliant! Those of us who purchased UST and luna, then sent it to Binance or Metamask or any other platform got screwed. The rich become richer, and the poor are poorer. great job.”

However, many users claim they have suffered financial losses. They praise Binance’s leadership, but question if it is possible to implement this suggestion.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.