There has been a lot of talk, or FUD, recently about Binance not being liquid. FUD stands for fear, uncertainty, and doubt. Even the SEC got involved. They alleged that CZ put customers and investors at risk.
Furthermore, they also alleged that CZ lied to regulators. These are serious allegations. Nonetheless, Binance is still up and running. What does Binance’s founder, CZ, have to say to this? Let’s look into a Binance AMA that CZ did on a Twitter space.
What Do You Have to Say About General FUD?
CZ answers that there will always be FUD. This can come from different motivations. For example, it can be from competitors, jealous people, or people who sold their coins. There are also people out there who want to sell negative news. Simply, because it sells more clicks.
This guy lost his fund and investors money since he used FTX.
Since then, he’s been posting FUD on Binance claiming it will be next.
This reads like bitterness and wish for revenge, not due diligence.
Where was his DD on FTX?
Posting FUD won’t recover his loss…
— Duo Nine ⚡ Crypto Alpha (@DU09BTC) September 6, 2023
However, he also states that there’s no accountability. When these people turn out to be wrong, there’s no recourse. On the other hand, there are also people who base their opinions on facts and in-depth research. He also likes to point out two things about this FUD:
- Many people try to paint it like Binance is like FTX. However, Binance has repeatedly proven that it’s not like FTX at all. There are no cross-collateral loans or similar fraudulent actions.
- The second point is that Binance becomes weaker. That’s due to regulatory and media scrutiny. However, they are still the market leader. He states that Binance is a much stronger company compared to two years ago. CZ states that they are ahead of compliance and scrutiny.
Here is a summary of CZ’s AMA about this issue:
What Are Your Thoughts on the Future of DeFi Over the Next Year?
He thinks that DeFi will be the future. Their volume is good, even bigger than Coinbase’s spot volume. During the next bull run, DeFi can even outperform CeFi. He says that a more decentralized industry is better.
What Is Your Position on BNB and Derivative Options on Bitfinex?
He says that he’s not familiar with derivative products on other platforms. However, he sees that everything goes in cycles. For example, four-year cycles, like the US presidency. There’s a clear cycle in crypto and stock markets.
CZ also sees plenty of positive developments in lawsuits. Many regulators have started to accept crypto more. He mentions, for instance, Japan, Hong Kong, or the UAE. In the long term, crypto is here to stay. It’s not going away, according to CZ.
Do You See Any Other Countries That Need Bitcoin?
Every country needs Bitcoin, he says. Although, some countries may need it more than others. Countries with low mobile and banking options need to provide these to their citizens. The easiest option is with a mobile phone, blockchain, and internet. Also, countries with high inflation will benefit from adapting to Bitcoin.
Is There a Plan to Uplift the BNB Chain Presence?
The BNB chain is a decentralized ecosystem. With all the new layer 2 solutions, the BNB chain is losing some of its popularity. Still, daily, the BNB chain has the most active addresses. CZ is more involved with the centralized exchange and doesn’t spend too much time on the BNB chain. But there are good developments, like the opBNB chain. That’s a layer 2 on top of BNB that reduces fees and increases capacity.
How Will Binance Look in the Next 5 Years?
The long-term trend will see more use cases and users in crypto. Binance puts plenty of effort into less revenue-generating countries. In the vein of banking, the unbanked.
Are the Binance Services in All 3 Middle Eastern Countries the Same?
Dubai has VARA (Virtual Assets Regulatory Authority). This is a very forward-thinking regulatory authority. It’s outside the central bank, so getting support from them will be hard. On the other hand, in Bahrain, the regulatory authority for crypto is the central bank. In Abu Dhabi, Binance has a different license. So, each place offers different services.
Can Exchanges Help to Close the Gap in the US Political Divide?
CZ calls the US a complex environment. However, exchanges need to communicate more and be more transparent. On the other hand, CZ feels that there’s also a lack of clarity in the US crypto regulation. There’s only enforcement.
What Does the BNB Chain Need, and Will It See NFT Growth?
NFT volume dropped, but the technology will stay. The full potential of NFTs hasn’t been unlocked yet. For the BNB chain, he would like to see more people use it for payments.
On different questions, CZ emphasizes that Binance wants to roll out more P2P options. This should be in a variety of countries. He would also like to see a bigger adaption of Binance Pay.
He also agrees that any action taken by the US government or institutions, has a big impact. For example, financial institutions may be more hesitant to work with you.
— CZ 🔶 Binance (@cz_binance) September 1, 2023
In the middle of all the FUD going on against Binance, CZ took the time out to take part in an AMA. He answered questions from listeners on a Binance Twitter space. There were 39.9k listeners for this space. It appears that CZ has a positive view of Binance’s future.
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