In the face of a series of rumors surrounding Binance and the current volatile market landscape, Changpeng Zhao voiced his opinion in an interview with the Bankless podcast on May 29.
Calm the community, eliminate rampant fud
First, the Binance boss discusses the recent controversies surrounding his company. Specifically, Binance is accused of abusing customer deposits and having an “illegitimate” relationship with China.
In light of this issue, CZ said that mainstream news sources tend to report negatively about cryptocurrencies and Binance to “follow” because of the overwhelming interest of the community.
“If you write a negative article about a small exchange, no one will care…but if you write anything about Binance, people will be more interested in that article.”
Besides, CZ also believes that his ethnicity is also the reason why he becomes a target of attack. It is known that CZ was born in China, but is a Canadian citizen.
Also, even though Binance itself was founded in China, the exchange no longer operates in the country due to strict regulations.
Currently, investors have to be very discerning when news is spread on social networks. Binance is also working to push back against negative fuds and aim to be transparent in all of its operations.
In particular, CZ also acknowledged that there are limits to transparency. The Binance boss argued that if the exchange disclosed all of its own wallet addresses, it would reveal Binance’s vendors and partners. This will greatly affect privacy and security as well as affect competition.
Global Regulations
CZ affirms that Binance is always compliant with global regulations. However, the talented entrepreneur also suggests that the crypto sector is becoming less competitive when it comes to regulations.
Therefore, Binance is considering acquiring a bank. However, the plan was put on hold as this would require extensive compliance with local regulations. In addition, CZ revealed banks are expensive, high-risk, and generally not very profitable.
State of the market
CZ thinks the crypto market is recovering, with a “chaotic mood” as the community is uncertain what will drive the “explosive growth” in the future.
“What will drive the next cycle? … People are rushing to find answers… even I myself am not sure of anything… this is probably why so many people are pouring money into memecoin… it shows that there is funds are ready to be deployed”.
CZ admits that he can be wrong about predicting trends. However, CZ advises investors to start investing in cryptocurrencies during market downturns.
CZ says that those who are investing in a bull market should only invest in what they are comfortable with in the event of a loss and should not look for investments that are over-hyped. Zhao said that he “learned this lesson the hard way” when he first started investing in stocks and cryptocurrencies.