The CEO of the largest cryptocurrency exchange Binance Changpeng Zhao criticized the proposal of Terra management to save the project through blockchain branching. The corresponding statement he made on his Twitter account.

Zhao said on Twitter that Do Kwon’s plan to save Terraform Labs, which he heads, through a fork is doomed to failure. Zhao believes that creating an additional blockchain will do no good.

“It won’t work. Branching won’t give the new fork any value. It’s wishful thinking,” the Binance chief wrote.

Zhao explained that issuing a cryptocurrency does not create value, but simply “dilutes the stake of the current owners of the asset.” The Binance chief believes that the incentive is “just a mechanism for the initial stage of cryptocurrency proliferation.” If Luna Foundation has bitcoin reserves, they should be used first to redeem UST, Zhao believes.