Main Takeaways
On July 31, 2023, Changpeng Zhao (CZ), Binance’s CEO, spent an hour on Twitter Spaces answering a slew of user questions.
Some of the most intriguing questions covered Binance’s recently obtained Dubai license, Binance Launchpad, and the launch of Coinbase’s layer-2 mainnet, Base.
Rather than resist competition, Binance embraces it. We welcome new products and blockchains emerging in the crypto space and are always looking for new ways to collaborate.
What follows is a summary of CZ’s answers to some of the questions he received during a Twitter AMA on July 31, 2023. Please note that this transcript has been edited for length and clarity.
On Binance’s Dubai License
Could you share some background and thoughts on Binance’s license in Dubai?
CZ: It's been a long time in the works. First, we got the provisional license about a year ago. It took another 12 months or so of detailed due diligence to get to this next phase, which is the Operational Minimum Viable Product (MVP) license.
The process is extremely tough, but Dubai’s regulators are responsive. It's good that the collaboration is there. Now that we have an Operational MVP license, people can access the crypto exchange and fiat gateways. It's great to see different parts of the world moving at different speeds, but Dubai is definitely at the forefront.
On Binance Launchpad
What is Binance Launchpad and why is it important for the ecosystem?
CZ: We launched Binance Launchpad in January 2019. We noticed that fundraising was easier during a bull market with a lot of money flowing into crypto. But in bear markets, when money is harder to come by, only a few strong projects are able to raise funds, and with more difficulty. We wanted to help, so we got involved and created Binance Launchpad, a centralized platform to raise funds in crypto.
So far, around 20 to 30 projects have gone through Launchpad. It's a process where we want to help founders while also giving our community a good deal. That's how we want to operate Launchpad. We'll continue to look for good projects, but we also have very high requirements. They need to demonstrate dedication and the ability to execute. Launchpad projects typically go through nine months or more of vetting before we come to an agreement. That’s generally how Binance Launchpad works.
On Binance Merch
Is it possible to purchase Binance merch?
CZ: Binance merchandise – what we call "merch" – we don't sell. We think that selling it decreases its value. We want it to be exclusive and hard to get. We are also not a fashion or physical shop. We don't do very good logistics, shipping, etc. It takes a lot of time and effort, and we are not optimized for that. We only want to give merchandise to people who are strong supporters of the community.
Many people have suggested opening a shop, but I've always turned it down. I want us to focus on software rather than hardware. We do spend money and energy on merchandise, but I think it's a good way to show appreciation for our community.
On Team Management
How do you set up your team to keep track of trends and act quickly where necessary?
CZ: We have different teams in different areas already; we have people specializing in blockchain, DeFi, NFTs, etc. Those people typically will give me information, and we monitor those business units. We don't try to invent trends, but when trends are happening, we want to latch onto them quickly.
I think identifying trends is not that difficult. The harder part is catching trends when they happen. Do we have the right team, or can we quickly assemble a new one? Or, are we able to identify leaders in the new space and invest in them? I think we have a very strong team. Given our influence in the industry and our brand, most projects are happy to work with Binance. For me, it's more about execution than identification.
On the Launch of Coinbase’s Base
What do you think of Coinbase launching its Base network? Do you see it as a threat?
CZ: No, we don't view it as a threat. I think the more, the merrier. There are thousands of blockchains out there. I think for any player to issue a new blockchain project is generally a good thing, as long as it's not a scam. Even if it's a failed project, I think it's still a good experiment that brings more choice to people. Coinbase has done a lot in the industry. They're the pioneers in the US, so for them to launch something like this is very good. We want to be supportive of it.
Given Binance’s role in the crypto space, it’s hard to find a player that doesn't have any overlap with us. If we resisted competition, we wouldn’t be able to work with anybody. Instead, we embrace competition. Though we overlap with most players in some way, we always try to work with them in other ways. Even Binance’s internal teams overlap in their responsibilities and product offerings. I think it's great that Coinbase is doing this, and I would encourage other platforms to launch new products and blockchains.
You can listen to a recording of the AMA in full here.
Please follow us on Twitter for news of CZ’s next AMA.
