Zhao Changpeng AMA Highlights: Responding to Binance FUD, Future Development of BNB Chain, and Views on Cryptocurrency
Stay low-key and keep building.Original Title: 《Highlights From CZ's September 1 AMA on X Spaces》
Original Author: binance
Compiled by: Kate, Marsbit
Main Content
- On September 1, 2023, Binance CEO Changpeng Zhao (CZ) spent an hour on X Spaces (formerly Twitter) answering a wide range of user questions.
- Some of the most interesting questions included Zhao's personal life, the recent FUD surrounding Binance, the development of the BNB Chain, and the demand for cryptocurrencies.
- Despite potential issues and uncertainties in the maturing crypto industry, Binance remains a clear market leader due to its regulatory transparency and strong innovation.
Here is a summary of CZ's responses to some questions during the X (formerly Twitter) AMA on September 1, 2023. Please note that this article has been edited for brevity and clarity.
On Recent FUD
How do you respond to the recent rumors and FUD surrounding Binance?
CZ: There will always be FUD, right? Many people have their own motives. Negative news gets more clicks. However, I think it’s worth mentioning that when these people make mistakes, they have no accountability. When a news article with FUD is proven false, we have no recourse.
Some people still try to portray Binance as FTX. I think we have proven multiple times that we are not like FTX. It is clear that Binance does not have loans, does not engage in cross-collateralization, etc. Binance's capital structure is very simple, with no debt, and we hold user assets, so there is no mixing of user funds. In fact, FUD has given us the opportunity to clarify this. We have withstood background checks, stress tests, and other challenges. I believe FUD has actually given us the chance to prove ourselves.
The second part of the FUD is that Binance is becoming weaker due to regulatory and media scrutiny. We are still far ahead, with over 150 million registered users. While scrutiny is not easy, it has actually made our business stronger. Over the past two years, we have invested heavily in compliance, talent, processes, technology, and more. Compared to two years ago, we are now a much stronger company, and we are also at the forefront of regulatory compliance and scrutiny.
I believe the industry is also maturing. People’s acceptance of cryptocurrencies is very high, and there is very strong evidence that Binance is a reliable platform. Ultimately, we just need to keep a low profile and continue building.
On Personal Life
What do you do in your personal life besides crypto?
CZ: I don’t do much. I’m a pretty boring person. I like to read. I don’t play video games. I don’t play golf, and I don’t go to clubs. I don’t do any of those things. I do go out to dinner and chat with friends, just hanging out. I listen to a lot of audiobooks, and I try to exercise a little every day. I either spend some time in the gym doing HIIT workouts or swim—things like that. Other than that, when I have time, I just read and hang out with friends.
Recently, I’ve read a lot of books related to negotiation. In fact, I highly recommend them to everyone. I think negotiation skills are important for everyone, and if everyone knew how to negotiate, the world would be a better place. Many people mistakenly think negotiation is just about bargaining, but negotiation is actually about finding solutions that benefit both parties.
I’ve also read a lot of books on entrepreneurship and self-help, but not many novels. I used to publish my reading list, but I need to update it. I’ve also read quite a few biographies to learn how others live. In my personal life, I often listen to a book and then do some exercise.
On Demand for Cryptocurrencies
Which countries do you think currently need to use cryptocurrencies?
CZ: My honest view is that every country needs cryptocurrencies. Some countries need it more urgently than others. In more developed countries, it may not be as necessary. However, there are countries without their own currencies, some use other countries' currencies to survive, and some have mobile penetration rates below 50% and banking penetration rates below 10%. Nowadays, these countries really need to provide financial services for their citizens, and the simplest way is to use mobile phones, blockchain, and the internet. There are many such countries.
I think most people sharing content on social media usually come from more developed countries, and the voices from underdeveloped countries are often not heard. In some countries, inflation rates are very high, and adopting a Bitcoin standard would be much better for them. They can protect citizens' wealth, and when you protect citizens' wealth and engage in the global economy, you can do better. I believe the technology is there, and I think we have seen smarter leaders taking a stance of adoption in the crypto industry. This is happening in many different countries, which is very positive.
At the same time, it feels like the world is constantly changing. There are many changes and potential instabilities in the world, and in such an unstable environment, a mathematically guaranteed protocol, like currency, is actually much more stable than anything else. I think more and more people are realizing this, and we are seeing more and more people accepting it.
On BNB Chain
What plans do you have to bring some momentum to BNB Chain?
CZ: I have no plans for BNB Chain, nor should I have plans. It is a decentralized ecosystem, so I do not get involved in its technical aspects. I still spend most of my time dealing with our centralized exchange. BNB Chain, as its own ecosystem, is decentralized, but I occasionally talk to some people there. A few years ago, when Ethereum gas fees were very high, BNB Chain was very popular, and there were no Layer 2 solutions. Now, quite a few applications have moved to second-layer solutions. However, so far, BNB Chain still has the highest number of daily active users.
I believe my philosophy is always to go where the users are. As long as the user community exists, developers will go there. I don’t have time to study the developer ecosystem, so I’m not involved in it. However, I hope more developers come to BNB Chain to build a more vibrant ecosystem. I think there are areas for improvement, but I haven’t made any plans. I see myself as a participant in this ecosystem, and I don’t put too much of my energy into it.
That said, we are very supportive of projects in the BNB Chain ecosystem, including investments, partnerships, listings, and more. There are also many new developments on BNB Chain. There’s opBNB, a second layer built on BNB Chain, which I think is a very interesting project. There’s also BNB Greenfield, a brand new storage chain and internet-based application. All of these things are still happening, and they are happening faster.
Once again, I think it’s always good to further reduce costs. It’s always good to increase capacity. If we want to build large-scale internet applications, we need to achieve that capability at a very low cost. Some things are what other blockchains are very good at, and that’s fine. Nevertheless, I hope BNB Chain continues to be a major player in the blockchain ecosystem and continues to grow.
