• Binance and Terra are “collaborating closely” on a recovery plan

  • Binance announced on Wednesday that it is collaborating closely with Terra on the recently authorized revitalization plan for the blockchain.

    In a tweet, the world’s largest cryptocurrency exchange stated that it intends to assist users affected by the Terra crash.

    The move comes shortly after the Terra community approved the rehabilitation proposal. The revitalization proposal was approved by 65.5 percent of holders, with a little more than 13 percent voting against it.

    Terra will now establish a new blockchain, Terra 2.0, and will airdrop a new LUNA token to existing chain holders. Terra Classic will be the new name for the previous Terra, and its native token will be LUNA Classic (LUNC).

    LUNA and UST had been delisted by Binance.

    In response to the Terra meltdown, Binance delisted LUNA and UST earlier in May. UST had plummeted from its $1 peg, while LUNA had lost approximately 99 percent of its worth. The collapse has now destroyed approximately $30 billion in investor capital.

    It was unclear how Binance would support Terra or whether the new LUNA cryptocurrency would be listed on the market.

    We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment.

    -Binance

    Binance could simply be giving Terra with data for its future airdrop.

    Terraform Labs founder Do Kwon previously stated that Terraform Labs was collaborating with major exchanges to collect data for the airdrop.

    Binance CEO Changpeng Zhao slammed Terra for the accident, saying it might have been avoided if the team had interfered sooner.

    Zhao also referred to Terra’s design issue as “extremely foolish,” arguing that minting more of an asset would improve its market capitalization.

    Nonetheless, Binance had faced criticism for listing and promoting Terra.

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