The conversation records of Binance’s internal leadership team during the Terra issue have been revealed by CEO Changpeng ‘CZ’ Zhao.
CZ and Mayur Kamat, Binance’s head of product, discussed what to do with Binance’s 15,000,000 LUNA, which was formerly worth $1.6 billion, according to the records. The coins were part of the company’s initial $3 million investment in Terra, but they are now only worth $2,700.
CZ on May 16, posted a tweet that said Binance will let go of Tether but in return, it will ask the Tether team to compensate the retail users first and then the Binance.
The Binance’s product head, Mayur Kamat further claimed that it just took five minutes for the Binance to make this decision
For Binance Its Always Customers First
Traditional financial markets have never had the option to decide to sacrifice billions of dollars in order to prioritize its consumers. A CEO’s fiduciary responsibility is to make decisions that benefit the firm rather than its consumers.
Despite the fact that the interests of both parties are frequently aligned, Binance could have saved hundreds of millions of dollars by selling its LUNA tokens during the crisis. As a result of not doing so, Terra LUNA will delete 15,000,000 LUNA coins from the new LUNA fork, perhaps making the issue worse.
As Kamat was reviewing the Terra crash event, he quotes that there are a few signs which confirm that you are working for an extraordinary company and this will be in the decisions that are made when things get hard.
Moving on he asserts that he has never worked at any firm where any decisions were made so quickly and says money is fungible but users trust is much harder to gain and easier to lose.
Is This Genuine Or Just A PR Move ?
However, even if Binance had wanted to, it’s likely that it couldn’t have done anything about the $1.6 billion LUNA coins. This might all be a public relations stunt, with the screenshots being released as part of a larger push to boost the company’s favorable image.
LUNA dropped 98 percent to barely $1 per coin in less than 48 hours starting on May 9. Do Kwon and the LFG team began selling tens of thousands of Bitcoin to reestablish the peg while UST was trading around $0.21. UST had hit $0.79 on May 11 and was showing signs of recovery. The algorithmic link between UST and LUNA, on the other hand, led the latter to plummet to $0.00000136 on May 13th.
Binance’s LUNA tokens were only valued at $20.40 at the time. On May 16, CZ sent out a tweet stating that Binance will not be relocating or selling its 15 million LUNA. As a result, unless Binance elected not to sell the LUNA coins before May 10, the coins were worthless.