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Binance Chief Offers Humbling Thoughts After Stablecoin Fiasco

While this hectic past week will indeed become a part of crypto folklore, those leading the space offer their thoughts on the importance of humility.

Web3 is a Humbling Terrain

The market is still reeling from the UST fiasco that saw Terra’s ecosystem crumble. While reactions have been varied, important figures in the space have banded together to reiterate that innovation and humility will overcome short-term instability. 

Binance Chief Changpeng Zhao was quick off the mark to offer a sense of perspective to the broader market. CZ took to Twitter on May 12 to relay a lengthy thread in which he underlined the value of fundamentals. He pointed out that innovation is a way of quelling fears around a cyclical market that reacts unfavorably to short-term trends and incentives. In what appeared to be a reference to the deferential attitude Do Kwon had adopted prior to the problems faced by Terra, CZ honed in on the importance of being humble in the space. 

There are different ways to interpret what CZ may have meant, but we can consider his words through the prism of motivation. What motivates the leaders of your favoured organizations in the space? Is there an ambition to create genuine long-term value for current and prospective users? These are very important questions that often can offer some clarity about the value of the project you are backing. 

Here at BSC News, these questions are something we are conscious of, as they define the impact we hope to have on the space now and for many years to come. So we caught up with our CFO, Ben Antes, and put these questions to him:

“This space comes with a ton of risk, and the Luna/UST incident shows how even large funds and seasoned investors can get burned when the economics of their investment fall apart. We occupy an interesting role within the larger crypto dynamic. While we may not be handling millions in retail-invested funds, we are conscious of the fact that we deal in an even rarer commodity; information,” Antes stated. 

BSC News understands its role in communicating the kinds of risks alluded to here. However, in the trying moments of the market, your understanding of the projects you are interested in is influenced by readily available information. Ben Antes hones in on this idea when considering the role of BSC News:

“In handling and delivering information surrounding some of the most lucrative ventures in the world, we are cognizant of our role as facilitators in a space that is ever-changing. In the end, this is what motivates us to act as the bridge that users need in understanding more about a space that is still understanding itself. In the midst of uncertainty, we want to offer users a clear-minded perspective of the innovations taking place. When everything was going up, the space seemed easy; now that the environment has changed, I think it’s really important to double down on investing in what makes sense and is safe while avoiding that feeling of FOMO and greed that can take grip so easily.”
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The BSC News Financial Chief’s sentiments hark to the attitudes and mindsets that have already propelled some of our space's most significant innovations. While profit and status-driven ambitions will always be a part of our world, understanding your role and offering value as a project or organization remains the most reliable way of ensuring that you will be relevant and active for years to come. 

The stablecoin troubles of the past week undoubtedly affected the broader market sentiment and saw significant pull-backs. Still, there have quickly been signs of recovery as we navigate out of the wreckage. We may well be in for some more pain in the coming weeks but what will not change are the innovative attitudes of the people that have gotten us this far.  

Binance Draws Line Under Terra Troubles

As Binance suspended LUNA and UST trading, CZ clarified the reasons for the decision in a lengthy Twitter thread on May 13. In addition, in keeping with the way the organization has always handled itself, CZ offered clarity on Binance’s communication with the Terra team and the aftermath of their efforts.

“I am very disappointed with how this UST/LUNA incident was handled (or not handled) by the Terra team. We requested their team to restore the network, burn the extra minted LUNA, and recover the UST peg. So far, we have not gotten any positive response or much response at all,” CZ explained in the thread.

While the decisions taken were not necessarily final, they were in response to a lack of communication which Binance has highlighted. There is a recognition that recent events do not serve to benefit the broader perception of crypto, but there is much to be learned from the past week. In the inevitable post-mortem, leaders in the space will do well to take a leaf out of the books of the likes of CZ and Ben Antes. 

BSC News will closely follow events in the aftermath of a difficult week in crypto. 

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