Share:
  • Binance CEO appeared in an interview with Bankless to discuss the state of the crypto industry.
  • CZ leveraged the opportunity to dismiss FUD, saying big players like Binance often get negative reports from mainstream news.
  • Zhao also addressed global regulations saying the crypto sector is becoming less competitive and more cooperative regarding regulations.

Binance CEO Changpeng Zhao, alias CZ, commented on the state of the cryptocurrency industry and the market in general during a May 29 interview with Bankless.

Also Read: Hong Kong's crypto rules come into effect, Binance CZ finds the timing interesting

Binance CEO dismisses FUD

Binance CEO used the opportunity to try to eliminate Fear, Uncertainty, and Doubt (FUD) in the market by discussing some of the latest controversies, particularly concerning his company.

Notably, Binance recently denied claims by Forbes, the Financial Times, and Reuters about its alleged misuse of funds and supposed ties to China. According to CZ, however, mainstream news sources tend to cover crypto with a negative bias, explaining why giant players such as Binance specifically attract FUD. In his words:

If you write a negative article about a smaller exchange, nobody cares … but if … you put Binance's name in the title, and hopefully something negative, people click more.

CZ also highlighted that his ethnicity made him an easy target. Notably, while Changpeng Zhao was born in China, he is a Canadian citizen. Similarly, while Binance was established in China, it no longer operates in the country following regulations and insists it relocated Chinese staff.

Accordingly, CZ asserts his high regardfor transparency despite the FUD, noting that Binance currently provides proof-of-reserve (PoR) reports. Further, Zhao acknowledged the limits to transparency, arguing that if the giant exchange disclosed all of its wallet addresses, it would reveal Binance's vendors and partners, compromising privacy and security and affecting competition.

Binance CEO addresses global regulations

CZ also acknowledged engaging with global regulations, noting that regulators put Binance "under the microscope" more because of its size. Nevertheless, he proposed that the crypto sector is becoming less competitive and more cooperative regarding regulations. Further, CZ assured that firms such as Coinbase and Kraken are working with regulators, urging that collective engagement can redistribute Binance's need to engage with regulators to other companies.

In a broader sense, Zhao explained that the Middle East and Europe are implementing the most promising crypto regulations. This echoes his assertions during a previous AMA discussion where he said Binance has a growing presence in the Middle East and North Africa (MENA).

CZ also highlighted that the flagship exchange considered acquiring a bank at one point but later determined that such a move would require extensive compliance with local regulations. In his opinion, banks are expensive to run, carry huge risks, and are often not very profitable.

Zhao on the state of the market

Commenting on the current state of the crypto market, Zhao opined that the market is recovering from the bear market recorded in 2022, which in his opinion, gives the market a "mixed mood" as it is unclear what will drive "explosive growth" in the future.

What's going to drive the next [cycle]? … everyone's looking for that right now … and when we're not sure, this is probably why many people pile into memecoins … it shows that there are funds  ready to be deployed.

Nevertheless, CZ acknowledged that he could be wrong about trends, cautioning investors who started investing in crypto during a market downturn.

As part of his closing argument, Zhao urged those investing during a bull market to invest only in what they feel comfortable losing and not seek out overhyped investments. "He learned this lesson the hard way" during his early days investing in stocks and crypto.

Watch the full interview here:

Also Read: Will Binance CEO Changpeng “CZ” Zhao be the next Elon Musk for meme coins?


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu price stagnancy brings investors’ losses to a 28-month high

Shiba Inu has been rather dormant these past four weeks, which is bearing a negative impact on the investors. The meme coin market has been struggling to make headlines as the lack of increase in altcoin’s market value has left investors in peril, which is now driving them to pull back and wait until SHIB starts rising again.

More Shiba News

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

LDO sees lowest cumulative volume in ten months as Lido DAO price struggles to breach key barrier

Lido DAO price is up over the past day as the market shifted its stance despite the SEC announcing a delay in the spot Bitcoin ETF applications of BlackRock among other applicants. However, this one-day rise is not enough for the likes of LDO that have been failing in recovering for a few weeks now.

More Lido DAO News

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain leaps 12% with soaring open interest as RUNE targets a peak of its current range

THORChain is testing a crucial multi-month obstacle after a remarkable climb. The move has completed the altcoin’s recovery rally following the 15% fall of September 27.  RUNE has outperformed the broader market, with Bitcoin and Ethereum recording only up to 3% in daily gains.

More Rune News

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink and Australia’s ANZ Bank issue AUD-stablecoin to successfully test interoperability

Chainlink put itself on the map with the help of its real-time data-feeding Oracles and is now in the spotlight for its interoperability protocol. Through this protocol, the blockchain project intends to not only connect two or five chains but also create the world’s largest liquidity layer, starting with Australia’s second-largest bank.

More Chainlink News

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin: BTC recovery rally could be bull trap in disguise, here’s why

Bitcoin (BTC) price remains unfazed even after the multiple spot BTC ETF delays from the US Securities & Exchange Commission (SEC). But investors need to be careful with the ongoing BTC rally as it could be a trap for early bulls.

Read full analysis

BTC

ETH

XRP