Author | Wu Shuo Colin
The content of this article is the views of the interviewees and does not represent the views of Wu Shuo
In this interview, Wu said Colin and Binance founder Zhao Changpeng CZ exchanged views on many aspects. CZ recalled his happy childhood in a Chinese school before the age of 12; after immigrating to Canada at the age of 12, his family's economic status changed, and his mother changed from a teacher to a garment factory worker, which even affected her health; later he dropped out of school early because he received a job offer.
Due to the rapid success of Binance, CZ went from obscurity to the world's richest man in just a few years. But then he was sued by the United States and eventually went to jail for four months. Every year, CZ said that his biggest wish was to have six-pack abs. He also joked that he was closest to having six-pack abs only when he was released from prison because the food there was so bad.
During the conversation, CZ discussed the reasons for Binance’s early rapid success, attributing it mainly to personal experience accumulation and timing luck. At that time, other exchanges were focused on mainstream coin trading, while Binance quickly launched a large number of ERC20 token transactions. Additionally, it discussed whether FTX could be saved and the challenges CEX faces regarding listing; whether centralized exchanges must move towards compliance; and the cryptocurrency policy direction in Hong Kong and the United States.
CZ shared his experience writing the most important article of his life (Principles); discussed the current predicament facing Vitalik, and teased Sun Yuchen; he analyzed why memecoins on Solana suddenly exploded; introduced his future work and advice for entrepreneurs. Finally, CZ sent New Year’s blessings to the Chinese community, believing that this year will be very good and hoping everyone will achieve good results steadily.
Listen to the complete podcast:
Little Universe:
https://www.xiaoyuzhoufm.com/episodes/6795f930d74435e4a3dc2cfa
YouTube:
https://youtu.be/vfl73WULagc
Childhood life in China before the age of 12 and family situation after immigrating to Canada
Colin: Welcome, CZ, to our interview. The first question is, you left China at the age of 12; do you still remember your childhood in China before the age of 12?
CZ: Yes, there was indeed. I think I had a pretty happy childhood, and my memories are quite beautiful. At that time, both of my parents were teachers, and I lived on campus, like in elementary school, middle school, and the University of Science and Technology of China, always living in a school environment, which left a good impression on me. I had a carefree childhood; my family wasn’t wealthy, but as a child, I didn’t feel the lack of money, and I always lived quite well.
Colin: I saw in your later interviews that there was a question. After you moved to Canada, you mentioned that your parents' salaries were close to the local minimum. Wouldn't that make life a bit tight after moving to Canada? Did your parents continue teaching there or engage in other work? Did you need to work to earn money?
CZ: When we first arrived in Canada, we were considered a middle-class or lower-middle-class family in China, with both parents earning a salary. My father saved money while studying abroad to send back to China, and at that time, the exchange rate made life quite decent. After arriving in Canada, the quality of life did not decline, but we were at the bottom of the social income ladder. However, we had no issues with food, clothing, and housing. My mother, due to her poor English, could not continue being a teacher and had to work in a clothing factory, sewing clothes daily, which was not good for her health, but it was the only job she could find.
In Canada, my father was a teaching assistant. His salary was not high, but fortunately, the university provided housing allowances for teaching assistants. We lived in a small house, which was larger than where I lived in China, so it was an improvement for me. We were not particularly poor in Canada, but our income was close to the minimum level.
Colin: What subject does your father teach?
CZ: He teaches geophysics, which has a high mathematical requirement and involves many complex formulas and frequent calculations. My father is very good at math, which may be why I also excel in science.
Reason for dropping out of college: Delayed graduation due to an excellent internship offer.
Colin: Both you and Vitalik immigrated to Canada and dropped out of college. Did you drop out because you wanted to start a business or were there other reasons?
CZ: I was already in my senior year when I dropped out, which is different from those who dropped out in their freshman or sophomore years. At that time, I was interning in Tokyo, and when the internship ended, my boss offered me a job with an excellent salary. After comparing, I realized it would be difficult to earn such a high salary after graduation. My boss had a project halfway through and wanted me to delay my return to work for a year, initially saying to postpone a few months, just one semester, while still offering me a normal salary. This offer was very generous, so I kept postponing, and after two years, I never returned to school.
Colin: So it wasn’t a decision made at that time to drop out and start a business; it was mainly because the job offer was too good.
CZ: Yes, unlike some people who decisively start a business, my academic delay was due to this good offer, and I never returned to school. Later, I found it a bit troublesome to apply for visas without a degree, so I obtained a degree through distance education at a college. So now I have a degree, but I did not graduate from the original university.
Discussing the reasons for Binance's early rapid development
Colin: I understand that you have started several projects; reports say there are 5-10. You founded Binance in 2017. It must have been challenging in the early days of Binance. At that time, you probably didn’t expect it to grow this large. Looking back now, what do you think were the most important reasons for Binance's explosive growth in just one year?
CZ: Many people think that Binance became famous overnight, but they may not have counted my more than 20 years of accumulation in the industry beforehand. I have been navigating the technical and exchange industries for over 20 years, and by the time I started Binance, I had been involved in the digital currency field for four or five years, accumulating networks and teams. When I started Binance, I built a strong team; both the technical and product teams were very capable. At the same time, the community provided a lot of support, and people were not unfamiliar with me. Also, I was lucky; the timing was very good.
In 2017, exchanges like Coinbase, OKCoin, and Huobi mainly focused on Bitcoin trading, with very few Ethereum ERC-20 tokens listed. Our BNB itself was an ERC-20 token, so we supported this type of token from the very beginning and subsequently listed many ERC-20 tokens. From a product perspective, our product advantages were obvious. However, I think the most important thing is that our philosophy is different from previous exchanges. We don't just think about making money but put user protection first, which was very evident during the '94 clean-up' incident.
At that time, it was stipulated that projects that had conducted ICOs in China must refund investors if they incurred losses. However, many projects suffered severe losses and could not repay the money. Our platform had about four projects in a loss state, and the project parties could not afford to cover user losses. After consideration, we decided to cover user losses, which calculated to be $6 million. It’s worth noting that two months prior, we had only raised $15 million, and at that time, the company was still at a loss, so $6 million represented 40% of the company's assets. Even so, we still managed to take out this money to cover user losses, and these were not even projects we had issued. In terms of customer service, in 2017, requests from customer service at other exchanges could take two to three months, while we promised to process within a day, and now it’s even shortened to five minutes. These reasons contributed to Binance’s rapid growth, and of course, luck also played a part.
The security pressures and system performance issues faced by Binance in its early days
Colin: At that time, I was working at Bitmain, and I felt that Binance faced a lot of pressure in its first year, especially regarding security. The team was small, and the industry’s security infrastructure was not well-developed, so wasn’t there huge pressure in dealing with hacker attacks and other security issues?
CZ: Yes, for any exchange, the pressure from security due to hacker attacks has always been significant; security is key to running an exchange. There’s a little story that many people may not remember. For the first four months after Binance went live, from July to mid-October, withdrawals were manually reviewed. Every withdrawal had to be processed by hand, with a few processed every few hours.
When the staff rested at night, no one was there to handle things. The reason for adopting manual review was that we were particularly worried that any loophole could lead to a complete loss of funds due to automated withdrawals. By October, Binance had already entered the top ten exchanges globally, but withdrawals were still done manually. However, the bigger challenge at that time was the system pressure. Binance grew too fast, with users continuously pouring in, leading to system lags. Although we advertised that our matching engine was fast, the surrounding registration system, KYC system, deposit system, withdrawal system, etc., all experienced lagging issues. Therefore, more energy was focused on optimizing system performance at that time.
Analyzing the FTX incident, is there a way to save it now?
Colin: The FTX incident is a significant matter in the cryptocurrency world; looking back, it seems ridiculous in the history of the cryptocurrency sphere, and Binance was also implicated. From the current perspective, is there any way to save FTX? It seems that its assets could cover user compensation, even though its behavior of misusing user assets is very malicious, and relevant responsible persons will certainly face jail time, but it seems the remaining assets could complete the compensation.
CZ: My understanding is that according to the price of cryptocurrencies in U.S. dollars at that time, FTX's existing assets could be covered when converted to dollars at that time. However, if all the various digital currencies held by users at that time are returned to them as they were, the portion of those coins that has appreciated since then cannot be covered by FTX's assets. In other words, if FTX had not encountered problems, the assets users held might have been three to four times more than what they actually possess now. According to the current calculation method, converting to dollars at the price at that time and then comparing the value of FTX's assets converted to dollars now can be covered. However, if users had held those coins until now, their market value should be four to five times what it is now. I am not entirely sure if my understanding is completely accurate.
Colin: It seems that the gap is still too large and difficult to bridge.
CZ: FTX didn’t completely cover all user assets; it was just calculated based on the lower coin prices at that time. If all digital currencies were returned to users, early users would have received five times the amount they are entitled to. This is similar to the Mentougou incident in 2014, where several billion was owed at that time, which was a huge amount, and now the price of coins has risen. Although FTX’s assets can cover the price of Bitcoin at that time, from the user’s perspective, if they had held those coins until now, the money they would receive would be five times more, so users still lost about 70-80%. Looking back, by November 2022, when FTX began to collapse, it was already beyond saving. If the problem had been detected earlier, there might have been a chance, but at that time, it was impossible to detect in advance.
Active on-chain economy and the plight of centralized exchanges?
Colin: There is also a recent hot topic I would like to hear your views on. Binance became very successful largely because it listed many high-yield new coins early on, like BNB and Tron, and later Binance’s launchpad and launchpool were also very successful. However, in the past year, the on-chain economy has been very active, and many people can get the lowest prices on-chain, while the exchange listing has instead become a signal for prices to peak, forming a strong contrast with the early days. I feel that whether it’s Binance or other exchanges, they aren’t quite sure how to respond; what do you think about this?
CZ: I think there are at least two levels of reasons for this. On the one hand, as the platform grows larger, it can only list more stable coins. If Binance lists a coin with a market value of only $10 million, or even just a few hundred thousand or a few million dollars, the price volatility would be too great. Therefore, from the perspective of major exchanges, they can only choose coins with larger market values to avoid excessive price fluctuations. However, major exchanges can also set up innovation zones or support these small coins in Web3 wallets; there are still ways to address this. Personally, I think Binance has not done particularly well in this regard. In the past year or two, Binance has been distracted due to some issues in the U.S. and some of my personal matters. I have spent most of the past year handling personal affairs in the U.S.
On the one hand, MEME coins have been very popular in the past year. Major exchanges have basically not seized this opportunity, and instead, it has been easier to participate on-chain, especially on the Solana chain. There are some claims about this, but I am not sure of their authenticity. Solana was closely linked to FTX; after FTX collapsed, many people on Solana lost a lot of money and lost support from exchanges, so they chose to pump and dump. It is not appropriate to do this on the Binance chain, as there are ethical and legal issues on both sides. Moreover, in the past few years, the U.S. Securities and Exchange Commission, like Gary Gensler, has basically classified various coins as securities, and the only ones that can be clearly defined as not securities are those with no practical use, which are MEME coins. Therefore, MEME coins are not easily sued. MEME coins have no other practical utility and promises, making them perfectly suited for pump and dump, and they are decentralized, so they are very popular on Solana. It’s like how we were lucky to hit a good moment in 2017; the past one or two years have been the time for MEME coins. I find this quite interesting and do not judge whether it is good or bad. Since the industry is moving in this direction, as a Binance shareholder, industry KOL, or OG, as long as it is beneficial for industry development, I will support it, so I encourage everyone to support MEME coins.
Do centralized exchanges need to move towards compliance?
Colin: Data shows that last year, Binance's fund inflow surpassed the total of all other exchanges combined. This indicates that although Binance has faced continuous challenges this year, its development remains steady. However, centralized exchanges are now facing compliance challenges; compliant exchanges find it difficult to make profits, and offshore exchanges face increasing regulatory risks. Exchange owners traveling to places like Japan or Europe might have problems, just like the Telegram owner, who was arrested as soon as he landed in France. What do you think of the current predicament of exchanges? Do you think the future will lead everyone towards compliance?
CZ: I believe it is like this. Once a platform reaches a certain scale, it must comply. From the perspective of regulatory authorities, small platforms may not be managed or may be temporarily overlooked, but large platforms are certainly the focus of regulation. Like Binance, it has been under regulatory scrutiny for a long time, so it must follow a compliant path. Binance has many restrictions, such as its Web3 wallet, which requires KYC verification. Although users control their own assets in the Web3 wallet (using MPC technology), some exchanges slightly smaller than Binance do not require KYC for their Web3 wallets. This is something Binance cannot do; these second-tier exchanges are not small but often do not conduct KYC verification. Therefore, Binance is more restricted, and major exchanges are generally more restricted, but compliance is a necessary path. Moreover, the execution of regulations is not balanced during the compliance process; not all platforms are treated equally.
Colin: It is indeed different. Now it might be like Sun Yuchen making crazy donations to Trump, but there might not be opportunities during the Democratic Party's governance.
CZ: Yes. However, I believe regulation will eventually improve, especially since the United States has become very supportive of digital currencies. I believe the U.S. will introduce a series of very positive regulatory provisions for the digital currency industry. The new regulatory provisions proposed by the U.S. Securities and Exchange Commission are very clear and much more proactive than before. As a result, the overall regulatory environment will improve, and the regulatory framework will become more complete. Platforms that have obtained licenses and meet regulatory requirements will have more opportunities to grow.
As you just said, although MEME coins are very popular now, looking at the inflow of funds, the inflow on the Binance platform last year surpassed the total of all other exchanges combined. This means that many retail investors, especially those who are first exposed to digital currencies, will choose the exchanges that appear to be the most regulated and stable, which have undergone multiple reviews and are still operating. Therefore, many new users tend to choose these more stable platforms. MEME coins are indeed very popular, but most of the people playing with MEME coins are OGs. Although there are also newcomers joining, early adopters account for a larger proportion. After many people have played with MEME coins, when they invest in digital currencies again, they will still choose to buy Bitcoin, and when buying Bitcoin, they may still choose large exchanges. Thus, different fields will have different development speeds, regulatory pressures, and models. I think this is quite good; an industry should have various different platforms.
Hong Kong hasn't done enough; it will face more relaxed pressure from the U.S. in the future.
Colin: What do you think about the current regulatory policies in Hong Kong? You just mentioned the U.S.; in the next two to four years, it will be a major positive for digital currency overall. Currently, the whole Chinese region may regard Hong Kong as a breakthrough point in the cryptocurrency field, and the latest report from the People’s Bank of China also encourages Hong Kong to actively explore cryptocurrency policies.
CZ: I think China's strategy is very wise to use Hong Kong as a pilot area. Over the past four years, the U.S. has had a very unsupportive and even suppressive attitude towards digital currency. In contrast, Hong Kong is more friendly to digital currency, but currently, Hong Kong may be a bit behind in this regard. The existing regulatory provisions in Hong Kong are quite restrictive; take Japan as an example, seven years ago, Japan had many regulatory restrictions on listings and futures, with unclear regulations. However, about three or four years ago, Japan basically completely relaxed its restrictions on listings. Hong Kong has not yet reached this level of relaxation. But after recently communicating with some high-level personnel in Hong Kong’s regulatory authorities, I feel there is a trend towards relaxing regulations in Hong Kong. Now that the U.S. is making progress in digital currency regulation, Hong Kong certainly cannot fall behind. I believe Hong Kong will soon make significant positive adjustments. Regulatory policy adjustments need to be gradual; previously, Hong Kong's regulatory provisions were indeed relatively tight, and it should become more competitive in the future, so I am relatively optimistic about Hong Kong's development in this regard.
The most important article of my life (Principles)
Original text:
https://mp.weixin.qq.com/s/gUU-tp4U9X43qIkX9niCgQ?token=386014621&lang=en
Colin: Next, I want to talk about the article you wrote earlier (Principles). This article has spread widely, and many people feel that it summarizes your years of entrepreneurial experience, with many interesting views, like your hope to collaborate more with proactive people who seek you out, and regarding work efficiency, that if something can be done in writing, there is no need to make a phone call, and if a phone call is possible, there is no need to hold a meeting. Now, looking back at this article, what key points do you most want to convey to the outside world? After these years, do you have any new thoughts to add? I heard you are writing a book; is it an expansion of this article?
CZ: Yes, that article took me about two to three years to write.
Colin: It has been a long time.
CZ: Yes, I initially did not expect to write for so long; I gradually added content while writing. I only thought of writing an article after finishing Ray Dalio’s (Principles). However, I couldn’t get started at first. Later, when I met Ray, I asked him how he wrote (Principles). He told me to reflect on the decisions made each day at night, considering why those decisions were made, and if there were principled factors behind some decisions, to write those principles down. After hearing him say this, I began to write a little every day. I would reflect on which meetings I attended, what decisions I made, and the reasons for those decisions, recording them if they had universal significance. I continued this for two to three years, completing this article, which, although not long, is about ten pages.
Colin: This is a very important article in your life.
CZ: That's right; it has indeed taken up a lot of time. Ray’s guidance has given me some ideas, and I gradually wrote down my thoughts and tried to write some things that differ from others' thinking. For example, everyone knows that companies should save money, so I don’t write about that. I have been observing myself, looking for ideas that differ from others. For instance, while others think that if they can meet in person, they won’t make a phone call, and if they can make a phone call, they won’t send a message, my viewpoint is the opposite.
This article took a lot of my effort, and the team also helped me polish it a bit, but the main content was indeed written by me. Additionally, I am currently writing a book about my personal experiences. I originally hoped to finish and publish it in the first quarter to the second quarter of this year. Previously, I had not much to do in the U.S. and could not meet too many people, so I spent a lot of time writing. But now I have encountered a bottleneck; even though I am not working, I am still very busy, and I don’t know why.
The future focus is on participating in investments and communicating with early-stage entrepreneurs.
Colin: There were previous reports that you might be more involved in investment work at Binance Labs. Are you currently mainly busy with investment-related matters?
CZ: Yes, we are preparing to rename Binance Labs, and we may release it this week (it has already been released, Yzi Labs). I am indeed doing some investment now, but I don’t look at many projects in terms of investment. I prefer to communicate with early-stage entrepreneurs because I am also an entrepreneur and am happy to support other entrepreneurs, so I pay more attention to early investment projects. Recently, I have frequently communicated with founders from various industries, and everyone has been very kind; many people come to meet and chat with me. I do my best to provide advice when I can.
By communicating with these founders, I have learned a lot. For the past seven or eight years, I have focused on Binance’s centralized exchange business, and now I have been exposed to many new areas, such as AI, biological sciences, and many new things in the blockchain field. People might think I know the blockchain inside out, but when you are busy running a centralized exchange, there is little time to deeply understand many new things; I only know a little bit. Now I have the opportunity to spend more time learning with these founders and understanding the new things they are doing, which I find very interesting.
Views on the difficulties facing Ethereum
Colin: Here’s an interesting question; do you usually browse Twitter? Recently, Vitalik has been heavily criticized, and yesterday, Sun Yuchen even offered him some advice. What do you think about the current predicament facing Ethereum? Do you have any suggestions?
CZ: I think this is more of a PR crisis; it’s a PR issue. Ethereum itself is still very strong; if we look at market value, aside from Bitcoin, it is larger than all other coins. Although Solana has risen quickly, its market value still lags behind Ethereum. To be honest, Sun Yuchen has always been keen on gaining attention; he does well in PR. However, Sun Yuchen giving advice to Vitalik is like a small exchange giving advice to a large exchange; there is still a gap in business levels. Of course, Sun Yuchen is smart and has strengths; every founder has their unique qualities.
Vitalik is a technical genius, and this cannot be ignored or denied. Innovations like ERC-20, NFT, and Soul-bound Token (Soul-bound Token) were all invented by him, all of which were born from Ethereum. His contributions to the entire industry are significant. Although Ethereum's price has not risen much in the short term, its overall market value is still considerable.
From my perspective, I support every entrepreneur in the industry. Both Vitalik and Sun Yuchen have had tough journeys. For those who trade coins, it is difficult to ensure that they only profit without loss; prices cannot keep rising; the industry will inevitably fluctuate. I advise everyone to maintain a long-term investment mindset and not to become emotional because of price fluctuations. Since its inception, Ethereum's overall increase has surpassed that of Bitcoin, which is no small feat. Vitalik recently posted a few tweets, which may not have hit the mark.
Colin: I feel a bit anxious.
CZ: And his way of speaking may not be very acceptable to people; he comes from a technical background, is relatively straightforward, and is young, often speaking directly. For example, when he says certain aspects are under his control or designated by him, it generates more backlash. However, as industry practitioners, we should be more tolerant towards him. We can’t put too much pressure on him because of minor issues; entrepreneurship is really not easy.
Responding to the difficulties faced by entrepreneurs in the cryptocurrency sphere
Colin: Additionally, the industry requires diversity; not everyone should focus only on Solana or all issue MEME coins. Not everyone should be like Sun Yuchen; the industry should have different development directions. You just mentioned that you mainly communicate with entrepreneurs and support them, but it seems that entrepreneurship in the crypto space faces some difficulties. Recently, a saying has become popular, stating that good products do not need tokens, and good tokens do not need products, etc. Regardless, it seems that entrepreneurship in the crypto space is facing a problem; outside of financial businesses, it seems difficult to make money, and the entrepreneurial path is relatively narrow. Do you feel this way? What suggestions or thoughts do you have for these entrepreneurs?
CZ: This is the first time I've heard this phrase today. But I completely disagree; I think there are many opportunities in the crypto space. There are many projects that can do well and have excellent token performance. On the contrary, I believe that if there is only a token without an actual project to support it, it will be hard to understand how its value can be maintained in the long run. Even issuing MEME coins requires some value support behind them; they cannot rely solely on speculation. Therefore, I believe there are many things to do in the industry. The trading volume of decentralized exchanges is rising, and more people are using them, but every blockchain experiences congestion when trading volumes are high; even Solana, which claims to be fast, has recently experienced congestion. Moreover, there is still a lot of room for improvement in wallet usability.
There are still many industries that have not yet been served by blockchain, such as the research field. Many scientists need funding for research, and although there may be many failures, once successful, the returns can be very substantial. This model is feasible; it just hasn’t been fully realized yet. Some politicians are also starting to issue MEME coins, and how to provide value support for these MEME coins after they are issued also needs exploration.
From my perspective, I have always seen countless opportunities as an entrepreneur and always feel overwhelmed. Good entrepreneurs are always the most scarce resource. Those who speculate on coins may complain about why the coins they bought cannot surge immediately. However, if we look back a few months ago when Bitcoin was $60,000, everyone was happy and felt it was a new high; now at $100,000, people are still complaining. I think everyone should not expect prices to rise every day and should view things from a long-term perspective.
Discussing views on Bitcoin price trends
Colin: How high do you think Bitcoin can rise in this cycle?
CZ: This is a question many people ask me, but I really can’t say. However, I think the current price wave of Bitcoin hasn’t peaked yet. Trump has just taken office, and a series of new compliance provisions and other measures in the United States have yet to be introduced. I believe there will be many positive developments ahead. I have always been very optimistic about the entire industry; even in the most severe bear markets, I maintain an optimistic attitude, just as I do during bull markets. So I have always been relatively optimistic, but my views may not be entirely accurate.
Change in the attitude of U.S. digital currency policy
Colin: In your last interview in Dubai, I remember Trump hadn’t taken office then. At that time, you said you didn’t want to have any relationship with the U.S.; has your attitude changed a bit now? You talked a lot today and seem very confident. But if you get closer to Trump or the U.S., what if in two or four years the Democratic Party comes back to power and the policy fluctuates? How would you respond to this situation?
CZ: Yes, the last interview should have been before the U.S. election, around late October to early November, when the election had not yet begun. So the situation in the U.S. was not very clear; it was uncertain who would be elected, and even if someone was elected, it was unclear how optimistic Trump would be about digital currency.
However, significant changes have indeed occurred in recent months; not only has Trump been elected, but he has also released relevant policies, which were previously unthinkable. Many of the new officials appointed in the U.S., especially those in core government positions, are very supportive of digital currency. It is evident from this election that the influence of digital currency is very large. Many young people hold digital currencies, and if they are unfriendly towards digital currency, it will directly affect their wealth, which will influence their voting; this is instinctive. Therefore, it is clear that digital currency cannot be ignored. I personally feel that the previous group believed that suppressing digital currency would gain more support, but the election results now indicate that this understanding is incorrect. So I believe that in the next four years, digital currency will see further development, and the possibility of returning to the previous suppressive attitude in four years is very small.
Just like the early internet, everyone questioned its merits at first, but after reaching a certain level of development, its acceptance could not be ignored. Therefore, the risks four years from now are relatively small. Second, from the current perspective, the Republican Party in the United States has a strong talent pool, for example, the Vice President has a high reputation. So we will see what happens in four years. But currently, the United States holds a positive attitude towards digital currency, which is very good for the entire industry. Now, all countries are actively promoting blockchain regulatory provisions, and the terms are becoming increasingly friendly, which is very positive. Binance currently does not serve U.S. users, but there is an independent company called Binance US, which is completely separate from Binance despite having its name. Previously, due to some issues, its scale has significantly decreased, but it is still operating. We hope it can develop healthily in the U.S. and continue to grow with the favorable conditions there.
I think Binance's products in the U.S. are very competitive. It has reached 40-50% of Coinbase's global trading volume twice, but both times it declined due to other third-party objective reasons. Therefore, as long as the regulatory provisions treat them fairly, it is very competitive, and I am not particularly worried about this.
Sharing daily life
Colin: Some of my friends want to ask you a few questions. First, how do you spend your daily life? Second, your New Year’s wish every year was to get a six-pack or eight-pack abs; how is the progress now? Third, what is your favorite city?
CZ: Okay. Regarding daily life arrangements, I am much more relaxed than before. I generally arrange seven or eight meetings a day, make a few phone calls, but now I can exercise every day, going to the gym and currently enjoying two sports.
Both of these sports involve boards; one is skiing, and the other is kite surfing. When it’s windy, I play for one or two hours a day, and the rest of the time is spent in meetings and such. My current life resembles that of a retired investor, which is much better than when I was the CEO of Binance. Speaking of six-pack abs, when I just got out of prison, I could vaguely see my six-pack abs, and I took a photo.
Colin: Is it because the food is relatively bland?
CZ: The food there is really terrible, so I ate very little. When I first came out, I could vaguely see my six-pack abs. One day, when I have the courage, I might post that photo I casually took in the bathroom; it's not a fancy photo. After getting out of prison, it’s hard to maintain a six-pack because after eating poorly, when suddenly there is good food, it's hard to resist. Building abs requires control over diet, but my self-control over food is not very strong right now, so the six-pack is gone. That was probably the closest I ever got to having a six-pack. What was the third question? Oh, the favorite city.
I like many cities; each city has its unique qualities. I currently feel very comfortable living in Dubai and Abu Dhabi in the UAE, where the business and digital currency environments are good, and the country's governance and public safety are also excellent. Of course, there are downsides; it is a desert, and it can get very hot in the summer, but the winter is very pleasant, and right now it is quite comfortable. I also really like Tokyo, Hong Kong, and Singapore. Europe has many great cities, but currently, Europe is developing slowly in digital currency, so I go there less often. As for South America and the U.S., I go less because of the distance. I mostly operate in the Middle East and Asia now; in Thailand, the traffic is quite congested, but I like other aspects.
Colin: You can only travel by motorcycle.
CZ: Yes, but when I usually go somewhere, I typically just stay at the hotel. I don’t spend much time on the road, mainly meeting many people in the hotel.
Sending New Year wishes to Chinese entrepreneurs and investors.
Colin: Lastly, thank you, CZ, for taking the time. I hope to have the opportunity to continue communicating with you next time. As the Chinese New Year is approaching, could you say something to Chinese entrepreneurs and investors?
CZ: Sure, thank you very much, Colin, for this opportunity. I believe we can definitely communicate frequently in the future. Previously in many Asian communities, I usually let He Yi handle the Asian market while I focused on the English market; that was our division of labor. So my communication with the Chinese community may not have been enough. Now that I am 'retired', I will take care of both sides in my personal capacity.
Here, my advice to everyone is to view this industry, technology, and industry development with the correct mindset and patience. Whether investors or entrepreneurs, the entire industry is in an upward phase. Although there may not be noticeable progress every day, from a monthly or annual perspective, the situation is very favorable. Everyone should avoid being anxious; whether it is entrepreneurship, issuing coins, or investing, they should steadily do their own thing. I believe this year will be very good. Here, I wish all friends and supporters in the Chinese community a happy New Year. Additionally, I will spend more time connecting with the Chinese community in the future, and we can communicate more.
Colin: Okay, thank you, CZ.