Changpeng Zhao, CEO of crypto exchange Binance, has said a hard fork of the Terra blockchain with a reversion of the network to the time before the collapse of LUNA and UST will not work because the new blockchain will be worthless.
After the collapse of the Terra ecosystem, the project community suggested a hard fork and the issuance of a new token, whose distribution could be made according to the snapshot of the network made before the market collapse.
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The initiative also envisages a new mechanism for organizing the blockchain as well as the creation of a group for the exchange of the algorithmic stablecoin UST.
Zhao has said:
"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)."
Binance's CEO has wondered about the use of the Luna Foundation Guard (LFG) Bitcoin reserve. According to him, the assets should have been used to redeem UST, but they were not.