Binance’s CZ dispels FUD, speculates on next big crypto trend in new interview
Binance CEO Zhao Changpeng commented on the current state of the crypto industry and markets in an interview with Bankless. May 29th.
Zhao dispels FUD
First, Mr. Zhao talked about the recent controversy surrounding his company. Binance has recently attempted to refute reports by Forbes, Financial Times and Reuters about allegations of misuse of funds and alleged ties to China.
Zhao suggested that mainstream news sources tend to cover cryptocurrencies negatively, with Binance particularly attracting FUD due to its sheer size. He said:
“No one cares if you write a negative article about a small exchange…but if you put Binance’s name in the title and hopefully something negative, people will click more. I guess.”
Mr. Zhao also claimed that his ethnicity targeted him. Zhao was born in China but holds Canadian citizenship. Although Binance itself was founded in China, it claims it no longer operates in China due to regulations and is redeploying Chinese staff.
Chao said Binance is aiming for “as transparent as possible” transparency despite the FUD, and said that Binance now offers a proof of reserve report.
He acknowledged that there are limits to transparency. He argued that if Binance published all of its wallet addresses, it would reveal Binance’s vendors and partners, violate privacy and security, and affect competition.
CZ on global regulation
Chao said Binance is working on global regulation. He reiterated that regulators are putting Binance even more “under scrutiny” because of its size.
However, he also suggested that the crypto sector is becoming less competitive and more cooperative when it comes to regulation. He said companies such as Coinbase and Kraken are working with regulators, and collective engagement could allow Binance to redistribute the need to engage with regulators to other companies. rice field.
More broadly, the Middle East and Europe currently have the most promising cryptocurrency regulations in place, Zhao said. Zhao said in a previous AMA discussion that the company is increasing its presence in the Middle East and North Africa (MENA).
Zhao also noted that Binance at one point considered buying the bank, but found that it would require extensive compliance with local regulations. He also said banks are very expensive, risky and often not very profitable.
Mr. Zhao talks about the current state of the market
Zhao also commented on the current state of the cryptocurrency market. The market is recovering from the 2022 bear market, he said. Zhao said this gave the market a “mixed mood” as it was unclear what would lead to “explosive growth” in the future.
What will drive us next? [cycle]…everyone is looking for it now…and this is probably why so many people pour into memecoins when they’re not sure…it shows that there are funds ready to deploy.? increase.
Zhao admitted that he could be wrong about positive trends, and later offered advice to investors who started investing in cryptocurrencies during market downturns.
He said those investing during a bull market should only invest what they are willing to lose and not seek to overinvest. Zhao said he “learned this lesson the hard way” when he first started investing in stocks and cryptocurrencies.
