Binance CEO Changpeng Zhao commented on the state of the crypto industry and market during an interview with Bankless on May 29. Here are the details…
Changpeng Zhao eliminates FUD
Zhao first addressed the recent controversies regarding his company. As we reported as Kriptokoin.com, Binance has been in the focus of Forbes, Financial Times and Reuters recently. These media outlets claimed that Binance misused client funds. He also drew attention with issues such as his so-called ties with China. However, Zhao denied these allegations. Zhao noted that mainstream news outlets tend to treat cryptocurrency negatively. He suggested that Binance specifically attracts FUD because of its size. FUD refers to the concepts of “fear, uncertainty and doubt” in the markets. Zhao said:
No one cares if you write a negative article about a smaller stock market. But if you put Binance’s name and something negative in the title, people will click more.
Zhao’s Chinese origin also influences the news
Zhao also claimed that his ethnicity made him a target. Zhao is a Canadian citizen despite being born in China. Although Binance itself was founded in China, it no longer operates in the country due to regulations. Also, Zhao insists that he moved his Chinese personnel elsewhere. Zhao states that Binance aims to be “as transparent as possible” despite the FUD. He also said that Binance is currently offering proof of reserve reports.
He acknowledged that transparency has limits. But he said that if Binance discloses all of their wallet addresses, it will expose Binance’s sellers and partners. Hence, he argued, it would endanger privacy and security and affect competition. For this reason, he pointed out that he offered as much transparency as he could.
Binance CEO talks about global regulations
Zhao said that Binance is interested in global regulations. Once again, he said that regulators are putting Binance “under the microscope” to a greater extent because of its size. However, he also suggested that the crypto industry is becoming less competitive and more collaborative when it comes to regulations. He noted that companies like Coinbase and Kraken are working with regulators. He said that collective participation could redistribute Binance’s need to interact with regulators to other companies.
More generally, Zhao said that the Middle East and Europe are currently implementing the most promising crypto regulations. Zhao said at a previous event that his company has grown in the Middle East and North Africa (MENA). Zhao also admitted that Binance is considering buying a bank at some point. He noted, however, that he has determined that this will require extensive compliance with local regulations. He also said that banks are too expensive, too risky, and often not very profitable.
Binance CEO comments on the latest version of the cryptocurrency market
Zhao also commented on the current state of the cryptocurrency market. He said the market is recovering from the bear market of 2022. Zhao said this puts the market in a “mixed mood” as it is unclear what will drive “explosive growth” in the future. The CEO used the following statements:
What will drive the next cycle? …Everyone is looking for this right now. When we’re not sure, that’s probably why so many people pile on meme coins…This indicates that there are funds ready to be distributed.
Zhao admitted that he could be wrong about positive trends. He then offered advice to investors who were starting to invest in crypto during a market downturn. He said that investors during a bull market should only invest in what they feel comfortable losing and not go into overly exaggerated investments. Zhao said he “learned this lesson the hard way” when he first started investing in stocks and crypto.
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