Do Kwon Takes Heat From CZ, Buterin, Markus For Terra's Failure And Revival Plan

KEY POINTS

Binance's CZ is not convinced forking would solve Terra's problems
Buterin criticizes UST's promise of being an uncollateralized stablecoin
LUNA was down 19.09% at $0.0001872

Do Kwon took heat from big names in the cryptocurrency industry, like Ethereum co-founder Vitalik Buterin, Binance CEO Changpeng Zhao and Dogecoin co-founder Billy Markus, for Terra's collapse, UST and LUNA's failure, and for his proposed plan to revive it from the ashes.

Crypto Twitter blasted Kwon for the catastrophic failure of Terra LUNA and UST and more so because of his hubris during the project's high time. But, Twitter users were not the only ones upset about what happened, as bigwigs in the cryptocurrency space also weighed in.

Kwon had shared on Twitter that he was heartbroken by what happened, revealing that he "spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging." He added, "I am heartbroken about the pain my invention has brought on all of you."

Changpeng Zhao - Founder and CEO of Binance exchange Changpeng Zhao

But Billy Markus, who uses Twitter handle Shibetoshi Nakamoto, did not mince words and told Kwon to cease creating more crypto market issues and leave the industry forever. "My recommendation is to stop trying to bring in new victims to fund the previous victims and leave the space forever," Markus tweeted.

my recommendation is to stop trying to bring in new victims to fund the previous victims and leave the space forever
— Shibetoshi Nakamoto (@BillyM2k) May 13, 2022

Binance's CZ, in a Twitter thread, addressed the current brouhaha in the crypto industry, addressing Kwon's proposed Terra revival plan and noted that minting and forking do not create value compared to buying back and burning, which may be beyond the financial capabilities of the team.

Personal opinion. NFA.

This won't work.
- forking does not give the new fork any value. That's wishful thinking.
- one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).

Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf
— CZ 🔶 Binance (@cz_binance) May 14, 2022

CZ also said that while failures can/will happen, "transparency, speedy communication and owning responsibility to the community is (sic) extremely important." Kwon, who has been very active on the social media platform, particularly on Crypto Twitter, miraculously shied away from the argument while Terra's collapse took place.

8/ I am just hoping that the project teams can rise from the ashes and rebuild in a proper and sensible way. Regardless of my personal views, or the solution chosen in the end, we will always be here to support the community in any way we can.
— CZ 🔶 Binance (@cz_binance) May 15, 2022

Buterin also gave his two cents on the issue and criticized UST's promise of being an uncollateralized stablecoin without highlighting the inherent risk of such a model. The Ethereum founder also said UST should not be compared to overcollateralized stablecoins like DAI, which is a stablecoin on the Ethereum blockchain.

Agree hard on this, with the one quibble that "algostable" has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables like DAI/RAI, and we need to really emphasize that the two are very different.
— vitalik.eth (@VitalikButerin) May 14, 2022

LUNA was trading down 19.09% at $0.0001872, with a 24-hour volume of $2,982,401,177, as of 4: 01 a.m. ET Tuesday, based on the data from CoinMarketCap.