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

Binance’s Changpeng Zhao (CZ) said the exchange supports the proposal to compensate retail LUNA users ahead of large investors. He also said that LUNA tokens, which Binance received for its $3 million investment in Terra, have not been sold or moved.

Binance’s LUNA Token Unsold

After his exchange was criticized for its handling of LUNA tokens, Binance CEO Changpeng Zhao (CZ) tweeted that any compensation to LUNA holders must prioritize protecting the interests of retail users. Binance has taken the lead in choosing to be compensated last, he said.

CZ Says Binance Supports Proposal to Compensate LUNA Retail Users First

In the latest Twitter post, where he addressed the controversy surrounding the LUNA token debacle, Zhao revealed to his followers that Binance had received 15 million LUNA tokens in exchange for a $3 million investment. According to the Binance boss, LUNA, which was worth $1.6 billion at one point, “is still at the address we received it from. It has never been moved or sold.”

Likewise, the 12,000,000 UST that Binance got from staking is still at the same address, Zhao said. He claims these have never been moved or sold.

LUNA User Reactions

Despite holding large amounts of LUNA and UST stablecoins, Zhao said the Binance team has agreed to prioritize proposals to compensate retail users. He said:

Now comes the important part. In order to lead by example in protecting users, Binance will let the Terra project team compensate retail users first, and Binance last, if any. Binance (after a 5-minute discussion) fully supports this proposal.

In response to CZ backing a compensation plan originally proposed by a Twitter user named Persian Capital, some of the Binance CEO’s followers insist it was wrong because it would make those heavily invested in LUNA at a disadvantage. Twitter username SEIF Motawi said:

“This is very wrong. What about the people who invested their money in LUNA and spent their life savings? Don’t they deserve compensation too?”

Another user Veronica, Comment: “Outstanding! So those of us who buy UST or luna and send it to Binance, Metamask or other platforms, for example, are screwed. Make the rich richer and the poor poorer! Well done.”

However, some users who claimed to have lost funds praised the stance taken by the Binance CEO, but asked if the proposal could be implemented.

What’s your take on this story? Let us know what you think in the comments section below.

Terence Chimwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

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