Centralized systems will help crypto integrate with traditional finance: CZ
Binance lists only one in every 10,000 coins created says CZ
Binance CEO Changpeng Zhao asserted that centralised exchanges like Binance will continue to remain relevant in 2022 and beyond. CZ’s statement was a response to a tweet talking about the dark side of centralised finance and the rise of DeFi.
The tweet was part of a series of tweets from the Binance community that CZ addressed in a year-end hot seat video published on the exchange’s YouTube channel.
The Chinese-Canadian business executive explained that the crypto market was still dependent on centralised exchanges to facilitate mass adoption.
“Today, we still need the centralized systems to integrate with the traditional financial industry so that we can bring the money into and out of crypto,” the CEO said.
CZ emphasised that the crypto industry was still in its nascency and thus, prone to “hackers, Ponzi schemes and scammers.” In 2021, the Squid Game token (SQUID) rose by around 45,000% before dumping. Binance announced in November that the exchange will launch an enquiry into the token and trace the funds associated with the pump-and-dump.
When asked to respond to a tweet that claimed that Binance exhibited favouritism towards certain blockchain projects and coins that the Twitter user called “totally fake”, CZ stated Binance was heavily selective in the coins it lists:
“Binance lists about six or seven hundred coins out of probably 6 million coins. So only one in 10,000 coins that’s ever created gets listed on Binance. That’s about 0.01%. It is a very small number.”
Stricter regulations on centralised exchanges have been a theme throughout 2021 with Binance getting into trouble with authorities in Turkey, Australia and parts of Europe. However, despite the setbacks, Binance has recorded over 90 million users worldwide.
CZ stated that Binance Coin (BNB) and Bitcoin (BTC) are his picks to hodl this year and assured that the Binance will “continue to work on Binance users’ feedback in 2022”.