The Press Stories
FTX founder Sam Bangman-Fried (SBF) took to Twitter to defend the Terra Ecosystem and its CEO and co-founder Do Gwon.
In response to a Coindesk article describing Do Gwon as Elizabeth Holmes of Crypto, Bankman-Fried disagreed. “Not all bad things are the same bad thing.”
1) Not all bad things are the same bad thing
– SBF (@SBF_FTX) May 14, 2022
The comparison between Holmes and Kwon is that the two ran a project that ultimately failed and lost billions. But SBF, LUNA / UST was bad and ended badly, which is not the equivalent of Holmes’ Theranos defeat.
His logic is simple: no one blames Holmes for Theronos’ defeat. She is under investigation because she lied. Holmes lied to investors about the potential of the technology he was developing, but Do Kwan made no such false claims.
According to the SBF, Luna / USD is very transparent, and Dow Kuan stood by it despite signs that it could disintegrate. Du Quan UST was supported by unstable assets and never lied that it could collapse.
7) But he did not say USD 1: 1 support for UST. He said, to be precise, it was backed by a bunch of turbulent assets. It was publicly clear that those assets might decline, and the rest followed.
Again – I do not want to forgive the behavior.
But it is different.
– SBF (@SBF_FTX) May 14, 2022
Sam Bangman-fried Despite the clear evidence of Luna’s decline, it was mass enthusiasm and marketing that spurred its growth. If he had clarified, “The marketing was probably bad. It’s not * the same * kind of bad as Theranos.”
The FTX CEO also pointed out that people could not turn a plan into a Ponzi plan because they would lose money. He cited examples of other investments that have lost more than 50% of their value this year, including Kathy Wood’s ARKK Investment, AMC Entertainment, Netflix and LUNA.
“Most bad investments are not Ponzi schemes. Some scams, some misfortune, some somewhere in between.“, He announced.
LUNA draws anger from Binance CZ
One of the main critics Terra Binance Changpeng Zhao describes UST “An exaggerated “standard” currency”And criticized the design flaws of its ecosystem.
1. at # Accounting We make user security a priority. We decided to suspend LUNA and UST trading. Here is why.
A thread
– CZ 🔶 Binance (cz_binance) May 13, 2022
For him, the way Terra handled the team situation disappointed him. He says the group did not comply with Finance’s demands, including removal and burning from the network. Extra Luna and USD value recovery.
Personal opinion. NFA.
It does not work.
– Forking gives no value to the new fork. It is the desire for desire.
– One cannot cancel all transactions after the old snapshot on both on-chain and off-chain (transactions).Where are all the BTCs to be used as reserves? https://t.co/9pvLOTlCYf
– CZ 🔶 Binance (cz_binance) May 14, 2022
Regarding the plan to save Terra by creating a new hard fork for Luna, CZ thinks this will not work To say
Gave no value to the new split. This is aspirational thinking. After the old snapshot, one can withdraw all transactions, both on-chain and off-chain (swaps).
Design flaw: Printing coins (printing money) does not create value, it dilutes existing coin holders.
Does not generate incentive value. This is a bootstrap mechanism only.
Create products that people use.
– CZ 🔶 Binance (cz_binance) May 13, 2022
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