Crypto

According to Binance CEO CZ, Centralized Systems Are Here to Stay

Binance CEO Changpeng Zhao

In a New Year video, Binance CEO CZ discusses Ponzi schemes, DeFi, and how Binance picks coins for listing.

Binance CEO Changpeng Zhao, or “CZ,” answered a series of handpicked Tweets from the Binance community in a tongue-in-cheek hot seat video to close out 2021.

The most important message from the Chinese-Canadian business leader was that centralized exchanges like Binance would be relevant in 2022 and beyond.

“Today, we still need the centralized systems to link with the old financial industry so that we can bring the money into and out of crypto,” CZ remarked in response to a loaded tweet regarding centralized finance’s dark side as well as the future of decentralized finance.

He qualified his remarks by pointing out that the cryptocurrency market is still in its infancy, vulnerable to “hackers, Ponzi schemes, and scammers.”

The Squid Game token (SQUID), which registered a 45,000 percent gain before dumping, will be remembered by keen readers as one of 2021’s famous rug pulls. Binance initiated an investigation into the coin in early November to track down funds linked to the massive pump-and-dump.

When asked about his preference for some blockchain projects or even coins that, according to one Twitter user, are “completely phony,” CZ was quick to clarify:

“Binance lists roughly 600 or 700 coins out of a total of probably 6 million.” As a result, only one out of every 10,000 coins ever minted is ever posted on Binance. This equates to around 0.01 percent. It’s a minuscule number.”

While currency selection is a moot point, controlled exchange (CEX) administration has been a hot topic in 2021. Binance Turkey was recently fined 8 million liras for non-compliance with money laundering regulations, while CEXs as a whole came under fire in August of this year.

Binance currently has over 90 million users worldwide, dwarfing its crew of “a couple of thousand Binancians” in terms of growth. Binance’s services will be available to more crypto fans around the world in 2021, thanks to regulatory permissions in Canada and Bahrain.

Meanwhile, CZ will keep his two favorite coins, Binance Coin (BNB) and Bitcoin, in his possession (BTC).

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.