CBC Holdings

The Changing Face of Cryptocurrency
Exchanges.
Cryptocurrency exchanges have long been known as one
of the primary drivers of growth in the cryptocurrency
industry, and are one of the first contact points for retail
investors, enthusiasts, and traditional traders look to get
involved in the industry.
Though cryptocurrency exchanges were once largely
clunky, unintuitive, and difficult to get to grips with,
modern exchanges are almost indistinguishable from their
early counterparts and can be considered entire
ecosystems unto themselves.

Binance CEO Shares Lessons Learned From
Terra Fall, Says He is 'Pleased by the Crypto Industry
Resilience
Addressing the historic fall of the Terra (LUNA) ecosystem,
major crypto exchange Binance CEO Changpeng Zhao
(CZ) said that he is "pleased by the resilience the crypto
industry has shown." However, he also shared some
lessons that the industry should learn from the Terra
fallout.
More precisely, in a recent blog post, CZ said there are
"many lessons" to be learned from the Terra crash in terms
of design flaws.
In the first place, when an asset is pegged to another asset
using the third asset as collateral, there will always be a
chance of a peg failure - even if the asset is over
collateralized by 10x. That is because the volatile nature of
crypto makes it possible for a collateral asset to crash by
more than 10x in a matter of hours.
Moreover, there were also design issues with Terra's burn-
and-mint mechanism, which allowed the stablecoin
terraUSD (UST) holders to swap UST 1 for USD 1 worth of
LUNA and the aggressive sell-off led to the supply of
LUNA increasing exponentially.
"The most stupid design flaw is thinking that minting more
of an asset will increase its total value (market cap),
" CZ
added. "Printing money does not create value; it just
dilutes existing holders. Exponentially minting LUNA made
the problem a lot worse.
Il
CZ slammed Anchor Protocol's 20% fixed Annual
Percentage Yield (APY) rate, which was used to attract
users to the ecosystem and convince them to lock their
UST tokens. Notably, many had called Anchor a "Ponzi
scheme" even way before the UST crash, arguing that it was not sustainable.

As a reminder, the Anchor lending protocol housed the
majority of UST's circulating supply, and it was used as a
key incentive mechanism for users to hold UST with its
high yields of 20%.
"Key lesson: don't just chase high APY. Look at fundamentals. “CZ said.

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We manage the Crypto/bitcoin funds of our
investors and with our first class Expertise, we trade on
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