“Top Six Questions: See how CZ (Changpeng Zhao) responds?”
01 Regulatory agencies
CZ: Binance is responsible for "communicating with regulators" and will invest more energy, funds and resources in this regard
Q: How to deal with increasingly stringent global regulations?
A: “Binance needs to engage and communicate with regulators, while leading by example, fully participating, and so on. Binance covers almost all products, which has both advantages and disadvantages. The disadvantage is that it takes a lot of effort to explain each product to regulators, but the advantage is that Binance is the first crypto company to introduce various products to them, and the regulators’ awareness is constantly increasing.
Facing regulation is a huge responsibility, but it comes with the size of Binance, so Binance has to do it. Binance will continue to work hard to invest more energy, funds and resources.”
02 Stablecoin
CZ: I hope USDT can improve transparency, and Binance will adopt a diversified investment strategy in stablecoins
Changpeng Zhao (CZ), founder and CEO of Binance, said in an AMA that there are many different types of stablecoins on the market. At the same time, different stablecoins also generate many different problems. First of all, the market value of USDT is very large, but I have not seen any audit reports of USDT, nor have I seen most people express their opinions about it. So everyone is not completely clear about the operating mechanism of USDT, which is somewhat like a black box. People cannot understand its internal operations. In addition, there are some problems with the legal supervision and transparency of USDT.
Binance is about to announce a partnership with another stablecoin, and is also working on a euro-based stablecoin, among several other possibilities. Therefore, Binance's approach is to diversify and see which one will develop better, given that each stablecoin option has certain risks.
03 DeFi
CZ: Plans to increase investment in the DeFi field and hopes to see more NFT use cases
Changpeng Zhao (CZ), founder and CEO of Binance, said in an AMA that he maintains a fairly open mind about which field will become the largest or most interesting in crypto and will continue to do what he is good at. That means we will continue to focus on operating the trading platform. CZ believes that CEX helps many people in the crypto space.
CZ added that there are many other interesting areas in which Binance plans to invest heavily, and DeFi is obviously one of them. NFTs may be a bit difficult at the moment, but hopefully people will find more practical and common use cases for using NFTs that aren't just for selling digital art. In addition, areas such as games and e-commerce will continue to develop.
04 Launchpad
CZ: Binance Launchpad was not easy to do during the 2021 bull market. The bear market environment made more projects come to seek help.
The significance of Binance Launchpad is to provide projects with an opportunity to raise funds. Binance launched the Binance Launchpad platform in January 2019. At the time, the price of Bitcoin was around $3,000 and the market was in the trough of a bear market.
The Binance team found that ICOs become easy during bull markets. When the market is flooded with a lot of money flowing into cryptocurrencies, every project performs well, but the valuation may be too high. However, in a bear market, fewer projects fish in troubled waters because raising funds becomes very difficult and only some excellent projects can successfully raise funds. So Binance decided to help this situation and launched the Launchpad platform, which is a centralized platform to help people raise funds.
In fact, in the bull market of 2020 and 2021, it was really difficult to get projects to come to Binance Launchpad at that time because they could raise funds on their own and get high valuations. It was difficult to get them to lower their valuations and provide a share to the Binance user community. So during the bull market, Binance Launchpad encountered difficulties. However, during the bear market or the ordinary bear market, we found that projects came back for help.
05 New stablecoin
CZ: In addition to FDUSD, new stablecoin partners will be announced soon
In addition to the stablecoin First Digital USD (FDUSD), there are new stablecoin partners to be announced soon. Specific details will not be disclosed for the time being, but we will support multiple cryptocurrencies.
In addition, the Binance team is working hard to find larger traditional financial payment service providers in the UK or Europe, but these traditional financial service providers are still somewhat hesitant to cooperate with cryptocurrencies or Binance. We find that every time we lose a partner, there are always about 10 new institutions seeking to cooperate with Binance. Therefore, we are exploring many different new avenues. Hopefully, we will be able to resume some services soon. In addition to this, we are also working hard to solve various challenges.
06 AI + Blockchain
CZ: Blockchain and AI may be the technologies that have the greatest impact on the future today.
Q: How will blockchain impact the financial industry?
A: I think artificial intelligence (AI) may be another very important technology (compared to blockchain), but AI affects different areas than blockchain. AI will impact different aspects of human society, and blockchain will first directly impact the financial industry, and then other industries as well. So I think these two technologies may be the ones that have the greatest impact on the future right now. We could spend hours discussing their respective potential impacts.