CZ spoke on Terra Luna’s collapse and Binance’s role in building a vibrant crypto ecosystem in an event hosted by MX Global, Binance’s equity partner in Malaysia.
Changpeng Zhao (CZ), the Chief Executive Officer (CEO) of Binance, arrived in Malaysia for an event hosted by MX Global, one of Malaysia’s four licensed crypto exchange platforms. He spoke candidly and passionately about Binance’s role in the crypto space and the challenges ahead as crypto gains mainstream appeal.
The event titled ‘Crypto Market Trends and Future Opportunities’ was an opportunity to hear from the man that been instrumental in shaping the crypto ecosystem today. Binance is the leading crypto exchange platform globally and has been spearheading various efforts to bring crypto-assets mainstream.
Dato’ Fadzli Shah, the Chief Executive Officer of MX Global in his opening speech acknowledged that crypto is the future and the future of crypto is in a regulated space. CZ took the opportunity to assure Binance’s users that the platform’s business model is simple. He said:
‘We do not sell our user data. We keep our business model simple. We merely earn a transaction fee….We want to grow the industry rather than taking market shares from another competitor.’
Building Success on Failures
One of the questions posed by the host, Dato’ Fadzli Shah, is about the Luna crash that wiped out $80 billion in wealth. The Binance chief in addressing the question points toward a fundamental flaw in the design of the Luna ecosystem. Minting new cryptos does not necessarily create value, which was the case with Luna (renamed Terra Luna Classic).
CZ was also of the view that slow response in maintaining the $UST peg by the technical team also contributed to the loss of consumer confidence leading to a market-wide sell-off. Communication was slow and this led to a downward spiral.
CZ believes that the Luna incident can be taken as a practical lesson. He believes that success is built on failures and in the decentralized world, the ecosystem is more resilient. The aftermath of the Luna incident created shakes and shocks, but the industry becomes stronger by taking a hit.
Projects ought to focus on their long-term goal which is more sustainable and returns a better reward. Binance is prepared to help promote founders that focus on long-term growth.
Giving Crypto a Mainstream Appeal
In the question and answer session, CZ spoke on the initiatives that Binance is taking to help grow the industry. Binance adopts the view that growing the market will eventually benefit the entire ecosystem. Therefore, Binance do not regard other market players as competitors. Binance has invested in many projects and this includes other crypto exchange platforms.
Speaking on initiatives by Binance, education is one of the key points highlighted. Binance hopes to partner with universities to offer scholarships to deserving talents. This ecosystem can benefit tremendously through value contribution by the right people.
Another key area of concern is the use of crypto assets for illicit activities. First, the myth that crypto is used for illicit activities is untrue. Cryptos are not good for illicit activities because transactions can be tracked and traced. Secondly, Binance takes a proactive stance in combating illicit activities. Binance has helped in enforcement efforts by enforcement agencies worldwide and was successful in doing so.
Source : bsc.news
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