The Earth project is now clearly dead, but it is in progress. a recovery plan and CZ, the CEO of Binance, hopes it will work.
Binance CEO CZ Hopes for a Rebirth of the Earth Ecosystem
However, there are many who doubt that it can work, also because on that same plane we return to talking about Earth as a project based on “decentralized money”, while reality has clearly shown that Terra is in no way a decentralized project.
Many are convinced that in the end there will be no real plan to revive the Earth project, which is now considered dead, but at most the reconstruction from scratch of another similar project, derived from what remains of the one that has now gone up in smoke.
Binance founder seems to think the same too, Changpeng CZ Zhao, who in a recent tweet says that he hopes the project team can rise from the ashes.
7/ I am not always right, but my perspective is: Failures can/will happen. But when they do, transparency, speedy communication and owning responsibility to the community is extremely important.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
The tweet doesn’t mention Terra specifically, but it’s part of a thread clearly dedicated to the project. In fact, in another tweet CZ states that in recent days they have been trying to support the Terra community, but also adds that forks or burns do not create value.
According to CZ, to do things right, the Earth project now needs funds that, however, it may not have.
4/ Binance Labs invested in hundreds of projects over the last 4 years, including exchange “competitors” and many “competing” blockchains. A few of them have fallen by the wayside, but a few have been extremely successful. That’s how investments work.
— CZ 🔶 Binance (@cz_binance) May 15, 2022
However, CZ asks the team for more transparency from the public on-chain transactions of all the transactions of the various funds of the project managers.
Where is the money from the Luna Foundation?
This remains today one of the most critical and thorny points regarding the implosion of the Earth: where did the billions of dollars originate that the team managed in particular, to try to support the parity of the UST with the dollar, now that parity is definitely broken?
According to a study published by Elliptic a few days ago, the money was “guarded” by the Luna Foundation Guard (LFG) to ensure that the peg was actually on exchanges like Binance and Gemini.
In the post published by Elliptic it is explained:
“All of these 52,189 BTC were later moved into a single account at Gemini, the US-based cryptocurrency exchange, through various Bitcoin transactions. It is not possible to further trace the assets or identify if they have been sold to support the UST price. «
The report then adds:
“This left 28,205 BTC in Earth reserves. At 1:00 UTC on May 10, these were completely moved, in a single transaction, to an account on the Binance cryptocurrency exchange. Also in this case it is not possible to identify if these assets have been sold or subsequently transferred to other portfolios”.
Meanwhile, it appears that the project founder’s girlfriend, do kwon , sought protection from the police after someone broke into her apartment in Seoul’s Seongdong-gu district.
Meanwhile, many exchanges have reinstated trading of various pairs with LUNA, and in recent days there have been true all -time highs in trading volume.
Suffice it to say that on Saturday, May 14 alone, the price of LUNA rose by 6,000% in a few hours , before falling 70% again the next day. However, it had previously lost nearly 100% of its pre-crash price.
In other words, these are purely speculative moves because to date, Terra looks to all intents and purposes like a dead project, just like its native cryptocurrency, LUNA.
Since these speculative moves can also lead to strong profits in certain cases, the trading continues, even though the medium-term trend is still bad and even though it is still possible to lose a lot.
Right now the LUNA price is 22,000% higher than the all-time low reached on Friday, May 13, 2022, but still almost 100% below the April 5 high.
In the last 24 hours, however, the volumes have dropped considerably compared to those of Saturday, and especially compared to the maximum peaks of the days of the crash, from May 10 to 12, returning more or less to the levels of the 9 of May.
Once the speculative hype has also faded, the market may end up slowly forgetting Tierra y LUNA unless, as CZ suggests, the project is reborn from the ashes with something different than it was a few days ago.