Get rid of the FUD
Recently, there have been many controversies surrounding Binance in the crypto market, including Forbes, the Financial Times and Reuters all reporting on its alleged misuse of funds and other issues. For this reason, Changpeng Zhao specifically explained that he believes that mainstream Western news tends to be negative about cryptocurrencies. According to reports, Binance can easily cause FUD (Fear, Uncertainty, Doubt) due to its large scale.
Changpeng Zhao explained: “If you write a negative article about a small exchange, no one will care, but if you put Binance’s name in the title, hopefully it’s negative, and the click-through rate will be more.”
In addition, Changpeng Zhao also claimed that his “race” has become the target of Western media attacks. He said that although he was born in China, he is a Canadian citizen. Although Binance itself was founded in China, it no longer operates locally due to regulatory requirements. , Chinese employees have also been relocated.
Zhao Changpeng said that despite the existence of FUD, Binance’s goal is to be “as transparent as possible” and also provided a reserve certificate report. However, Zhao Changpeng admitted that transparency “has a limit.” If Binance discloses all wallet addresses, it will expose suppliers. and partner information, thereby compromising privacy and security and affecting competition.
In terms of regulatory regulations, Changpeng Zhao said that Binance has been actively participating in global regulation, but because of Binance’s large scale, regulators will largely “put it under the microscope.” In terms of regulation, although the crypto industry is increasingly cooperating with regulators (for example, crypto companies like Coinbase and Kraken are cooperating with regulators), the competitiveness has become less and less competitive. Changpeng Zhao further stated that the encryption regulations currently being implemented in the Middle East and Europe are very promising. He also previously revealed that Binance’s business in the Middle East and North Africa (MENA) is growing.
Additionally, Binance considered acquiring a bank at one point, but found that extensive compliance with local regulations would be required, and banks would be costly, risky, and often unprofitable.
Current state of the cryptocurrency market
Regarding the current state of the cryptocurrency industry, Changpeng Zhao made it clear that the market is recovering from the bear market in 2022, but investors have “mixed feelings” because no one knows what narrative will drive future “explosive growth”:
What will drive the next cycle? Now everyone is looking, but no one is sure, and that’s probably why a lot of people are piling into meme coins, however, this state of affairs shows that at least the market still has funds, just waiting to be deployed.
Changpeng Zhao specifically stated that his views on positive market trends may be wrong. Those who invest in a bull market should only invest in losses that they feel they can afford, and should not seek excessively hyped investments. Finally, Changpeng Zhao revealed that he suffered failure when he first invested in stocks and cryptocurrencies, and “learned this lesson in a painful way.”