Terra’s (LUNA) comeback on May 27 with Close Support from Binance

Despite criticizing Terra and its co-founder Do Kwon’s recovery plane, Binance steps in to help Terra Network(LUNA) rebuild its platform. The Terra platform collapsed at the beginning of May due to the failure of its algorithm in its Algorithmically Stablecoin UST. It was also delisted from major exchanges and DEXs.

Proposal for Terra Rebirth

On May 25, Terra Blockchain announced that its community has proposed to relaunch the Terra Network with a hard fork. The proposal bearing the number 1623 was passed by a majority(65.50%) of voters with just 0.33% in opposition and 20% abstaining. The remaining 13% were voters who had veto power. If they had crossed the threshold of 33%, the proposal could have been vetoed.

The blockchain is set to go live on May 27 with airdrops confirmed for those who had UST or LUNA.

Support from Binance

Binance announced on Twitter that it was closely working with Terra Network to help it rebuild its network.

The Terra community just passed a vote to ‘Rebirth Terra Network’.

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

— Binance (@binance) May 25, 2022

The current plan is to make a hard fork and rename the earlier cryptocurrencies as LUNA Classic and UST Classic with the pre-fork blockchain to be called Terra Classic.

Earlier Statements from Changpeng Zhao’s Twitter

Personal opinion. NFA.

This won't work.
– forking does not give the new fork any value. That's wishful thinking.
– one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).

Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf

— CZ 🔶 Binance (@cz_binance) May 14, 2022

Changpeng Zhao, the CEO, and founder of Binance in a series of tweets called out how the algorithmic downfall of UST and LUNA was mishandled by Terra. He also stated that he had doubts if the revival plan would work. But despite all the differences, Binance came to the aid of Terra much like an elder sibling and an industry leader.

The mystery of reserving Bitcoins with Terra still remains a mystery. Terra had the highest number of Bitcoins in the world quite a few times. It announced that it had loaned it to market makers(e.g., Uniswap) to stabilize the UST.