The Luna recovery plan put forward by Terra founder Do Kwon would see a new Luna token created
The Terra Luna collapse shook the crypto market – but didn’t destroy it.
The crypto market lost around $500 billion in value as the top 20 tokens TerraUSD (UST) and Terra (LUNA) crashed towards zero. Of course, UST and Luna were not the only tokens to lose value, as together their losses amount to around $80 billion in market cap.
But this kind of crash is not new to crypto. The current cryptocurrency market cap of $1.25 trillion has not fallen lower than the bear market during the summer of last year. And, according to Binance CEO Changpeng Zhao, there’s even a ‘new found resiliency’ in the crypto market that ‘did not exist during the last market downswing’.
Terra is aiming to be part of this resiliency with the launch of a new Terra ecosystem, and a plan for Luna to recover. But the Binance CEO has been opposed to these ideas.
Here’s why you might want to listen to what he is saying, and choose Binance for your crypto investments in the future.
Why Binance CEO is ‘disappointed’ with the Luna recovery plan
The Luna recovery plan put forward by Terra founder Does Kwon would see a new Luna token created, on a new Terra blockchain forked from the existing one.
According to the Binance CEO, it’s not a good idea.
Changpeng Zhao has been vocal in Tweets expressing his ‘disappointment’ with the Luna recovery plan. He said Binance requested the Terra team to ‘restore the network’ and ‘burn the extra minted LUNA’ to recover the UST peg.
This approach would not need to create any new Terra blockchain or any new cryptocurrency. This approach is favourable for many investors, as there’s no certainty that a new Luna token will gain widespread adoption and hence net a return for disaffected investors.
Changpeng Zhao has also expressed support for directly reimbursing the $ value of UST holders’ investments under 250k. He said this would help to make 99% of UST investors ‘whole’ and leave only negotiations with larger whales.
As of May 19, however, the vote on Terra’s new hardfork and blockchain creation appears to have gained a majority ‘yes’ vote on the Terra Research Forum.
The difference between BUSD and TerraUSD
The Binance CEO has often said he puts ‘users’ first. The Binance approach can be seen in the success of the BUSD stablecoin, which has leaped into 7th place in the crypto market cap rankings while TerraUSD has fallen dramatically out of the top 50.
BUSD is the only major stablecoin backed by US banks and reserves of over 90% in real US dollars. As a result, its deviation from the $1 dollar peg is nothing like that seen by Tether in the past few days, as it dropped to $0.97 in price.
BUSD has seen a good alternative to UST. The BUSD savings account does not offer the 20% APY seen in the Anchor Protocol – but the 10% APY offered by Binance is much more stable and hence realistic.
Top Binance-based projects that earn you stablecoin passive income
With a strong infrastructure and user-focused business plan, it’s no surprise that many projects have chosen the BNB Chain on which to build stablecoin-related projects.
One of the leaders in this space is EverGrow Coin – a hyper-deflationary token that rewards investors in BUSD. EverGrow Coin charges a 14% transaction tax from which 8% is immediately redistributed as BUSD to investors, depending on the size of their wallet.
EverGrow Coin has a partnership with SafeMoon. While SafeMoon is arguably the most well-known reflection token, EverGrow Coin is the first to pay reflections in the BUSD stablecoin rather than a native token subject to huge market volatility.
Since September last year, EverGrow Coin has paid out $37 million BUSD to investors.
With an NFT marketplace on the BNB Chain coming, as well as a content subscription platform and metaverse integration, EverGrow Coin are proving why Binance is the safest blockchain platform to earn passive income, and invest in stablecoins and reduce risk in their crypto investments.
The native BNB token of Binance has already established itself as the 4th biggest cryptocurrency. BUSD has finally broken the top 10. Projects like EverGrow Coin are not far behind.
Perhaps in a few years, crypto investors will see May 2022 as the moment when Binance took the crypto industry to the next level – rather than the moment when Terra left it in ruins.
