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Why Binance Crypto Lending Could Be a Bad Idea

Not a week goes by without the world’s most dominant crypto exchange launching a new service or incentive. This week has been no different with the announcement of a controversial crypto lending platform. Reaction has been mixed and not all think it is the best thing for the crypto ecosystem.


In its latest move to cement a growing monopoly in the crypto services industry, Binance announced a lending platform which will launch on August 29. The service will allow users to lend out their holdings for fixed periods of time, initially 14 days, and gain a passive income from the interest. It also added that there will be annualized interest rates for certain crypto assets – with its own native token, BNB, unsurprisingly offering the highest interest rate.

Offering Fixed Interest Rates is Unwise

danger bitcoin price

The crypto community has already reacted to the latest attempt from CZ et al to dominate the industry by hovering up as many customers as it can. Offering fixed interest rates is not so commonplace in the financial industry and could cause problems down the road, especially when one of the proposed interest payment options is in Tether (USDT).

Research director Larry Cermak tweeted exactly that, stating that offering guaranteed rates of return is never a good idea. There were further comparisons of the proposed platform to the Bitconnect lending scam which folded in January 2018. Some of the responses to the announcement were quite vociferous.

“I did not know that @cz_binance is so desperate to try to make us keep his coin … once binance is out from us #BNB will crash so hard that ppl will start starving and they will also ruin his family i think is time to create a blog about all this ponzy scams!”

While it is highly unlikely that Binance is in fact a scam, the new lending scheme does appear to be just another attempt by the company to get people to hodl Binance Coin.

Forget About Basic Crypto Security

Another aspect not overlooked by astute industry observers is the encouragement to keep funds locked up on a centralized exchange that has already suffered a hack this year. Granted, Binance has its SAFU for insurance against such things, but in reality it is just one big digital bank holding all of the keys. And as the old crypto adage goes, ‘Not your keys, not your coins’.

Binance also has ambitions to be the provider of the world’s stablecoins, all built on its own blockchain and protocol of course, to take on Facebook’s Libra. The company seems to have no inhibitions at the moment and is on track to becoming the totally dominant ‘Google of the crypto world’.

In order for cryptocurrencies to fulfill their intended destinies as decentralized money, they need to be released from controlling elements such as centralized exchanges, companies, tokens and lending schemes. Binance’s lending scheme goes completely against the basic rules of crypto security and adds another element of third-party control over user’s funds.

Is crypto lending bad for the industry? Add your thoughts below.


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Srp 21

Facebook Faces Fresh EU Scrutiny As WhatsApp Edges Closer To Mobile Payments

The European Union is actively probing Facebook’s Libra digital currency project for competition law violations, mainstream media report.


Facebook’s Libra Has ‘Potential Anti-Competitive Behavior’

According to Bloomberg, which cited official correspondence August 20, the European Commission is quizzing Libra participants via a dedicated questionnaire.

The document originally appeared earlier this month, and forms Libra’s latest scrutiny by international regulators.

The focus of the enquiries is “investigating potential anti-competitive behavior,” Bloomberg quoted officials are stating. In particular, it is Facebook’s spin-off in charge of administering Libra, the Libra Association, which now lies in the spotlight.

According to Bloomberg, the EU is “concerned about how Libra may create ‘possible competition restrictions’ on the information that will be exchanged and the use of consumer data.”

As Bitcoinist reported, Libra became a headache for authorities worldwide almost as soon as its whitepaper went live. With some of the world’s biggest finance names involved, concerns about data privacy and the power to control a user’s economic power continue to surface.

The US held dedicated hearings into Libra and cryptocurrency more generally in July, while China has even prepared its own state-backed digital currency in response. 

The EU probe further involves the wider crypto sphere, the Commission adding it was “monitoring market developments in the area of crypto assets and payment services, including Libra and its development.”

WhatsApp Eyes Indonesia For New Mobile Payments

Facebook has promised to contend with the worries of regulators regarding Libra, while sources have acknowledged it may never launch at all.

Given the company’s user data handling record, one Bloomberg correspondent said commenting the EU move, it could be next to impossible for it to gain a significant foothold in the payments space. 

That said, Facebook-owned WhatsApp is already preparing to debut payments for users in Indonesia. Reportedly in talks with various digital payments operators, Reuters stated Tuesday, the instant messenger wants to offer its users mobile payments. 

Local regulations mean that WhatsApp will not offer P2P payments itself, the publication added, while a full payment offering for the Indian market also awaits permission to launch.

The plans do not make explicit references to Libra, which Facebook previously said would involve its subsidiaries including WhatsApp and Instagram in future. 

As Bitcoinist reported, for its part, India is currently on course to ban cryptocurrency altogether, unless a token falls within parameters under discussion among authorities. 

What do you think about Facebook and WhatsApp’s plans? Let us know in the comments below!


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Coinbase Custody Acquires Xapo’s Institutional Business

Coinbase Custody today announced that it has acquired Xapo’s institutional business, making it the largest crypto-custodian in the world. The acquisition brings Assets Under Custody (AUC) to over $7 billion, servicing over 120 clients in 14 countries.


Innovation In Cryptocurrency Custody

Xapo is a long-respected name in the world of cryptocurrency custody solutions. It has led the industry in developing security techniques to meet the rigours of institutional clients.

In 2017 it hit the headlines for storing customers’ bitcoin in a fortified ex-military bunker in the Swiss Alps. By May 2018 it was holding around $10 billion in bitcoin for customers across five continents.

CEO, Wences Casares, has long been a champion of Bitcoin, and Xapo’s mission is to make Bitcoin secure and accessible. Casares believes that any investor who doesn’t have at least a one percent position in Bitcoin is being irresponsible.

Coinbase’s Move Into Crypto-Custody

Coinbase Custody started trading a year ago, with a remit to provide secure cryptocurrency storage for institutional investors. According to marketing it combined the ‘battle tested’ cold-storage solutions employed by the Coinbase exchange, with an institutional-grade broker/dealer.

It quickly added a raft of additional crypto-assets to its original four of BTC, ETH, BCH, and LTC. However, there were questions as to whether institutions would immediately trust the offering. Certainly, while the bear market was in full swing, growth in AUC was slow.

It wasn’t until the bulls really started taking control again in May this year, that AUC crossed the $1 billion mark. But since then, growth has been steadier, and with this latest acquisition of Xapo’s institutional business, Coinbase Custody are claiming over $7 billion in held assets.

The Final Hurdle To Institutional Adoption?

There are many who think that crypto-custody is the final hurdle to institutional adoption of bitcoin and cryptocurrency. This area is certainly where a lot of resources are currently being deployed.

Bakkt is still waiting on approval from the New York authorities for its custody solution, before it can start offering its physically backed bitcoin futures products. Fidelity’s move into crypto-custodianship was supposed to remove one of the final barriers to institutional adoption back in March.

Even the South Koreans are getting in on the act, although technically, the legality of cryptocurrency in the country is still in question.

We are still waiting for the expected flood of institutional investors, but steps are certainly being made. Whether their eventual arrival will be a positive thing is another question entirely.

What do you make of this latest Coinbase acquisition? Add your thoughts below!


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Facebook Covert Audio Sharing Casts Doubt Over Libra Privacy

Facebook used third-party contractors to listen to user audio without telling them, in a move which raises questions about the third-party sponsors of its libra cryptocurrency.


Facebook Shared Messages With Third Parties

As Bloomberg reported on August 13, Facebook confirmed it had used middleman firms to transcribe audio messages from its Messenger app. 

The practice, which the company says it halted just last week, only involved users who had given their permission for audio collection in the app’s settings. However, Facebook did not disclose the data would be sent to third parties. 

“Much like Apple and Google, we paused human review of audio more than a week ago,” an official told Bloomberg, which reported contractors involved felt their work constituted a moral dilemma. 

The latest privacy shock is pertinent for cryptocurrency fans watching developments of Facebook’s in-house token and financial platform, Libra. 

As Bitcoinist reported, the project, while yet to launch, has the backing of some of the tech world’s biggest – and on occasion most notorious – names.

Large corporations such as PayPal have agreed to stump up $10 million to run a node for Libra, with critics already warning that a future Libra user could have their financial freedom entirely controlled by those nodes.

“…If 10 of the 28 initial validators (eg. Paypal, Visa, Mastercard, eBay, Facebook, plus 5 others) agree in a closed-door meeting that they want to reject your Libra transactions, they have the power to do so because they prevent a two-third majority from validating them,” angel investor Marc Bevand summarized in a review of Libra in June. 

Libra’s Data Honey Pot

With freedom, however, comes concerns about data protection. A power-sharing agreement involving all the world’s tech and finance heavyweights could spell disaster in the event of data mismanagement – or simply provoke anger if similar methods to Facebook’s own data collection habits become commonplace.

Nonetheless, commentators from both within and beyond the crypto industry have identified positive improvements Libra poses over central bank fiat money.

“To be fair, Libra is still probably somewhat of an improvement over the current financial system,” Bevand continued. 

“Today Paypal can unilateraly (sic) freeze your Paypal account. While in Libra you need at least 1/3rd of Libra members to collude and block your payments.”

Arthur Hayes, CEO of crypto derivatives giant BitMEX, echoed that perspective last month, bluntly describing PayPal’s own model as “fucked.”

In a world where Libra is ubiuquitous, he said in an interview, “all a bank is relegated to is a dumb node that holds fiat currency in electronic form at a central bank.”

What do you think would be Facebook’s privacy practises under Libra? Let us know in the comments below!


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Bitmain Loses $625 Million In Two Months, But Pins Hopes On New Tech

Bitcoin mining rig manufacturer, Bitmain, reportedly made losses of $625 million in the first two months of 2019. However, it has high hopes for a turnaround based on demand for new 7nm mining machines.


A Bad Start to the Year

According to a report from a Chinese news outlet, Bitmain’s total operating income for Q1 was $1.082 billion dollars, with revenues split over the three months as $253 million, $253 million, and $579 million (respectively).

January and February saw losses of $345 million and $280 million, although in March the company posted a profit of $315 million. Still, a $310 million loss over Q1 is not a good look.

Reportedly, the loss was down to the offloading of outdated 16nm mining rig inventory at low prices.

New Tech To Change Bitmain Fortunes

Despite Q1 losses, Bitmain expects a strong performance in H2, once its old stock has been cleared and the company starts selling its new 7nm machines. Bitmain has allegedly placed a large order for 7nm chips from Taiwan Semiconductor Manufacturing Company (TSMC), with a lead time of 3 to 4 months.

It expects cash flow to steadily increase in Q3 as advanced orders for the new machines come in, and then see explosive growth in earnings after the first 7nm rigs start to ship.

It also anticipates a growth in profits on its artificial intelligence (AI) line of products.

Better Results To Boost IPO

Bitmain will need to post some better results if it is to attract investors to its beleaguered IPO. The company has allegedly revived its IPO plans in the US, after the original filing in Hong Kong lapsed.

Bitmain had a somewhat disastrous year in 2018 as prices fell across cryptocurrency markets, and it took an ill-advised gamble on Bitcoin Cash. This was considered by many to be good news for Bitcoin as mining became more decentralised and Bitmain’s mining dominance dropped.

The upturn in the fortunes of Bitcoin have also helped Bitmain in its recovery, with some sources claiming that staff options have been already been completed, ahead of the revived IPO, which is now imminent.

Do you think 2019 will be the year for Bitmain? Let us know your thoughts in the comment section below!


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Visa, Paypal Say They’ll Pay $10 Million to Run ‘Facebook Coin’ – Report

Big companies like Visa and PayPal are reportedly willing to pay millions for the privilege of running a node on the Facebook cryptocurrency network.


Facebook’s foray into crypto has been met with mixed reaction. Some are hailing it as the next step in a global financial revolution, while others have expressed concerns over the company’s shady past record when it comes to security, privacy and data abuses.

Nevertheless, U.S. tech and finance giants clearly want a slice of the Facebook crypto pie. According to the Wall Street Journal, a number of financial and e-commerce companies, venture capitalists and telecommunications corporations have already pledged to back the new project.

Big Names Want In On ‘GlobalCoin’

The report added that over a dozen firms, which include Mastercard Inc, Visa Inc, PayPal Holdings Inc, Stripe Inc, Booking.com, and Uber Technologies Inc, have formed a consortium and agreed to pledge $10 million each to secure governance over the new crypto coin.

It was reported last month that the social media giant was recruiting backers and aimed to raise $1 billion for the crypto project.

Fearing Bitcoin, VISA and Mastercard Reclassify Crypto Purchases as 'Cash Advances'

The currency dubbed ‘Libra’ or ‘Global Coin’ is expected to be officially announced next week. The stablecoin will be pegged to a basket of government-issued currencies — similar to the IMF’s SDR (special drawing rights) basket of fiat currencies — to avoid the volatility of cryptocurrencies.

The report was not very complimentary of bitcoin stating,

It has been a decade since bitcoin was born, yet consumers hardly use it—or the hundreds of other cryptocurrencies—to pay for things. Facebook is betting it can change that with a crypto-based payments system built around its giant social network and its billions of users.

The usual regulatory concerns have been raised as governments get anxious about the potential for money laundering. According to the WSJ, Facebook won’t exactly control the new coin, neither will the individual members of the consortium, which is known as the Libra Association.

Citing people familiar with the situation, it added that some could serve as nodes for blockchain transaction validation.

Facebook is still the direct developer of the greatly guarded technology so its influence over the coin is likely to be as strong as it has over the data on the social media platform. Just like Google, Facebook has a highly secretive algorithm that determines what users can and cannot see in its news feed.

‘Facebook Coin’ Will Boost Bitcoin

Co-founder and partner at Morgan Creek Digital Anthony ‘Pomp’ Pompliano said that the move was especially bullish for Bitcoin adoption considering two of the backers are Visa and Mastercard.

Participating in the Libra project allows companies like PayPal, Visa, and Mastercard to exert some level of control over the new ‘cryptocurrency’ and its centralized governance. This makes the new coin unlike Bitcoin that’s an open-access cryptocurrency allowing anyone to download the software and run a node.

Therefore, ‘Facebook Coin’ is unlike to pose any real threat to the future of decentralized peer-to-peer finance. Instead, it already looks to be more like a competitor to banks or even Starbucks Rewards than P2P ‘digital gold.’

Will Facebook crypto be a threat to bitcoin? Add your thoughts below.


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Facebook Sued By Dutch Media Tycoon Over Scam Bitcoin Ads

Facebook is being sued by Dutch media tycoon, John de Mol, for posting fraudulent Bitcoin ads that listed him as an investor.


 Billionaire Claims Facebook Turns a Blind Eye to Scams

On Wednesday, Reuters reported that John de Mol, the billionaire businessman behind the popular reality TV show ‘ Big Brother’ was suing Facebook for publishing false advertisements which used his name to carry out Bitcoin-related investment fraud.

De Mol’s legal representatives told an Amsterdam District Court judge that Facebook did not diligently vet the authenticity of the ads and that the company had not exerted any urgency in addressing the issue. De Mol’s lawyers also complained that Facebook had not responded to De Mol’s complaints appropriately.

facebook coin crypto

The advertisements promoted an investment scheme which encouraged participants to send money to purchase bitcoin at lucrative rates and to also invest in fake cryptocurrency-oriented startups, which were supposedly endorsed and backed by De Mol.

De Mol’s lawyers are asking that the court require Facebook to amend its listing algorithm to block any ads that feature De Mol. They stressed that the fake adverts were damaging to De Mol’s reputation.

De Mol’s lawyers also claimed that naive investors were purloined out of 1.7 million euros by the ads. They pointed out that he was not the only Dutch celebrity whose person was used as a front for fraudulent investment schemes.

Facebook Says ‘We’re Working on It’

Facebook lawyer, Jens van den Brink countered that the tech giant is unable to monitor every ad placed on its platform in realtime. Van den Brink claims that the fraudulent company and its ad content were deleted shortly after Facebook was informed of De Mol’s complaints.

According to Van den Brink, Facebook also met with the Dutch financial markets regulator (AFM) to determine new methods for preventing scammers from posting fake ads.

Many are of the opinion that Facebook’s current system of relying on users to self-report unauthentic content is insufficient and lawyer Jacqueline Schaap said,

I don’t know what reality Facebook lives in, but that doesn’t work.

Schaap suggested that Facebook should enact “pre-emptive action to block such ads” and De Mol’s lawyers want Facebook to hand over all information about those behind the fraudulent investment schemes to the local police.

The Case Continues

The judge overseeing the case asked Van den Brink pointed questions about Facebook’s ad vetting procedures and also dug into whether the company actually checks the content of the landing pages that advertisements are connected to. Van den Brink confirmed that the company does thoroughly vet content but also admitted that the software can be duped by advertisers who alter links in their ads or disguise their content.

ico scam

Facebook manager Rob Leathern told reporters that the social media giant is working to weed out fraudulent advertisements but “the people who push these kinds of ads are persistent, they are well-funded and they are constantly evolving their deceptive tactics to get around our systems.”

As the hearing wrapped up, Judge Dudok de Heel declined to set a date to rule on the case and suggested that there is the possibility of both sides reaching some sort of agreement.  

Just last month, Bitcoinist reported that Facebook has eased its restrictions on certain cryptocurrency-related ads to make way for its own ‘cryptocurrency’ dubbed GlobalCoin.

Do you think Facebook should be held accountable for the paid content is publishes? Share your thoughts in the comments below! 


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‘Facebook Coin’ Will Be More Like Bitcoin Than Starbucks Rewards, Says Analyst

Speculations about the purpose of Facebook’s planned digital coin are getting wilder. Ignoring key features like independence and decentralization, one analyst predicts that ‘Facebook Coin’ would look more like Bitcoin or Ethereum than your Starbucks reward points.


Facebook Coin Might Encourage Viewing Ads

With growing interest, many are trying to envision Facebook’s planned ‘FaceCoin.’ Lacking specifics from Facebook, speculations abound about everything from the coin’s name to what it will be used for.

Under the code name “Project Libra,” tech journalists say, Facebook, Telegram, and Signal are devising their own digital token, which would allow their billions of users to exchange money across the Internet, through their payment systems.

Others argue that Facebook’s coin will be more like one of the major cryptocurrencies. In effect, one analyst, Lisa Ellis, a MoffettNathanson partner, predicts:

The Facebook (FB) coin (Facecoin, perhaps?) would actually look more like one of the large public cryptocurrencies such as Bitcoin or Ethereum and less like the internal-payment or loyalty systems that companies like Starbucks(SBUX) use.

She adds that FBCoin will likely be a more-public coin that’s governed by an independent board such as Ethereum and its foundation.

Except That It Won’t…

But regardless of the type and number of predictions put forward, one thing is sure. Facebook’s digital coin won’t be anything like Bitcoin.

It will be issued, developed and controlled by a centralized authority. Its ledger will not be immutable, and access will likely require your Facebook account.

The social media giant has not explicitly denied or acknowledged any of these speculations too. The latest statement on the subject from the company was issued to Barron’s on May 10, 2019,

[Facebook is] exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.

Visa, Mastercard Would Welcome a ‘FaceCoin’

But while Ellis didn’t mention any specifics, Ellis believes Facebook’s coin probably will end up being a tool to encourage users to watch ads.

This is something Brave has been attempting with its browser and native BAT token though some haven’t been impressed and are working on a more bitcoin-friendly version.

Meanwhile, Ellis had also earlier warned clients that cryptocurrencies could pose an existential threat to Visa, Mastercard, and Paypal. In contrast, she argues that Facebook’s coin would actually benefit these payment giants. Ellis wrote,

If Facebook(FB) launches an open digital wallet and checkout button, the company will need to collaborate with Visa and Mastercard(MA) to enable a variety of card-based funding methods in its wallet (similar to Apple Pay, PayPal(PYPL), or Google Pay).

So how will it be like Bitcoin again?

Will Facebook’s digital currency be anything like Bitcoin? Let us know in the comments below!


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FedEx Calls To Mandate Blockchain For International Shipping

FedEx CIO, Rob Carter, believes that mandated blockchain standards for international shipping will lead to widespread adoption within the industry. This would also enable authorities to better track goods’ provenance, and help combat the trafficking of counterfeit or illegal goods.


Digitizing The Paper Trail

Carter was speaking during a panel discussion at the Blockchain Global Revolution Conference. Moving a package internationally requires an awful lot of documentation, he explained, some of which can be as important as the package itself.

While this was traditionally paper-based, even digitized documentation transfers occur via 60-year-old technology, with no real-time data. The industry-wide adoption of a standardized blockchain could provide a global solution, and a level playing field, away from proprietary systems. Said Carter:

We’re not an organization that pushes for more regulatory control, but there are times regulatory mandates and pushes can be incredibly helpful.

Working Together To Define Standards

FedEx has joined forces with competitors, UPS and DHL Express (all members of the Blockchain in Transport Alliance), to hammer out standards for such a system. Currently, though a company like UPS can manage single supply chain transactions, these break down when dealing with real-world scenarios with multiple shippers.

A company may use DHL to ship components to Germany. The assembled part may then ship to Latin America via UPS before the fitted part travels to Japan via FedEx. A standardized blockchain would enable all of the relevant information to be shared between all parties and different national authorities.

Stemming Flow Of Counterfeit, Dangerous, and Illegal Goods

Just this month, the White House highlighted the need to combat trade in counterfeit goods, estimated to have a value of half a trillion dollars annually. Using a permissioned blockchain would create a permanent ledger, and the additional use of IoT sensors and RFID tags could give real-time feedback on transit conditions.

Blockchain Technology is Shaping the Future of Shipping

All authorized entities, from shippers to government agencies, to customers, could track packages, potentially all the way back up the supply chain.

FedEx Logistics CEO, Richard Smith, explained that the government’s concern with this was that blockchain had not been widely adopted. His response to which was:

You’re the government. You can mandate that it’s widely adopted.

Gov’t To Mandate Industry-wide Blockchain Adoption?

FedEx believes that this is the quickest way to modernize and streamline the industry, meeting customers’ increasingly complex cross-border shipping, transportation, and brokerage needs. Additionally, it would provide a way to help customs and border agents to achieve their goals, regarding illicit goods flow.

Shipping has long been one of the industries with high hopes for the introduction of blockchain based solutions. A standardized and mandated system could see one of the first cases of mainstream adoption.

Will FedEx be one of the first shipping giants to successfully use blockchain tech? Share your thoughts!


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Binance CFO Talks About His ‘Exciting’ Journey in Exclusive Interview

It was the last hour of the final day at Paris Blockchain Week Summit. The charismatic Binance CFO Wei Zhao had been speaking back to back. Yet, despite the time and the fact that he must have repeated himself over and over for two solid days, he seemed undeterred. Wearing jeans and a Binance hoodie, he bounded up to meet me, vigorously shaking my hand, clearly enjoying being the man of the moment.


If this were a celebrity party, Binance would be the VIP guest. Changpeng Zhao (CZ)’s creation seems unstoppable. Every project wants to be on Binance, from regular token listings to holding IEOs on the Binance LaunchPad. The Binance Chain has just launched, its native BNB token is climbing in price, and the company has the power to influence the entire community and delist tokens at will.

Binance Won’t Be Leaving Malta Any Time Soon

Minister for Digital Affairs Cedric O later said in a press conference that one of their goals was attracting Binance to France. Yet Zhao confessed to me that he had no idea the French had pushed forward new regulation until now.

With a rather high taxation rate for crypto companies at 30 percent, regulations around ICOs (that no one’s doing anymore) and a lot less flexibility than Malta, it looks unlikely that Binance will move to France anytime soon. Although I wasn’t privy to any backroom chats.

binance cfo wei zhao

My interview was with Wei Zhao, the man partially responsible for Binance’s epic growth. “I help companies to scale and to grow,” he tells me. Binance now has over 400 people in 30 countries. That’s “a decent sized organization.”

One thing that I have helped to launch is our fiat to crypto offering. In January, we launched our fiat to crypto, pound to BTC. We’re also doing Singapore. Last year, we launched in Uganda… My approach has been basically to build up our presence in the regulated world and build up more fiat.

Bridging the Traditional Financial World with Crypto

With a background of working in traditional finance, and grooming companies to go public, it’s unsurprising that another major focus of Zhao is institutional investors.

“I worked in Hong Kong, so I’ve been CFO for about four different companies, two of which went public. So, I am quite adept in dealing with bankers, and working with bankers, I am a banker myself. I helped to launch our OTC trading services, Binance off-exchange services. I help bring people from traditional bond traders and that type of trader to cryptocurrency.”

Indeed, the surge in Binance’s OTC trading drove the company’s near $80 million first-quarter profits.

What It’s Like Working at Binance

I ask why he made the leap from traditional finance to crypto. He says he would not have done it for any other company than Binance.

I think we are really different from other companies. Most are just exchanges, but we really fiercely want to make an impact in the world… The journey has been awesome so far and I’m in it for the long haul.

One of the best things about his job? Traveling to different places. “I flew around the world four or five times already,” he laughs.

It does speak to the borderless nature of cryptocurrencies. Yes, it’s a digital business but at the end of the day, it’s still a human business, it’s a very human business. The reason this industry is growing so much is that people in this industry travel so much. Like 10 times more than in any other industry.

There’s nothing like human interaction, face to face human talking about things, that’s how you can really impact change.

Does the Recent Leap in Bitcoin Mean the Bear Market Is Over?

It’s not a decisive “yes” when I ask if the bear market is over. Zhao pauses and leans back in his chair. There’s a short silence before he forms his answer, leading me to believe the opposite may be true. But with the most profitable exchange in crypto, bear market or no, nothing’s stopping Binance. He says:

I think there’s generally a lot more interest across the board despite adverse regulation and other adversities. You see general interest in bitcoin from traditional industries, and the rest of the world is showing interest in projects and I think all of it will contribute to the continued growth of the market. The fact that people are thinking “how is this going to impact my business?” Facebook JPMorgan… it lends credibility to the space.

I ask if companies like JPMorgan and Facebook lending “credibility” is rather ironic, considering how Bitcoin was born. He replies:

You need a push which is driven by guys like Facebook and JPMorgan, that gets people thinking about how that’s going to impact institutions and the market. It lends credibility, mindshare, and shows that our actions are getting noticed, that’s what it takes.

What It’s Like Working with CZ

So, what’s it like working with one of crypto’s biggest personalities? “Awesome, it really is awesome!” he enthuses, “he’s extremely transparent, diligent and extremely honest, he’s also extremely intelligent, and very patient.”

changpeng zhao cz binance

I ask if he was in complete agreement about the recent delisting of Bitcoin SV, to which he nods his head. Presumably, he’s been fielding questions on the subject all day long and his answer is extremely diplomatic.

“We have a very rigorous delisting process, and we also have a regular quarterly review. This quarter a lot of the comments we’ve written out our rationality… I don’t have any other comments on that.”

Finally then, who does Zhao believe that Satoshi Nakamoto is? Clearly, not Craig Wright.

“I think its a community,” he replies. “It’s like ‘I am Bitcoin’, you know that movie? ‘I am bah, blah blah’? It’s like that with Bitcoin. It’s a community. And we’re surviving… I believe that every day that you survive extends your survival… There is a reason why he or she wants to remain anonymous, because it’s not important, it’s a community.”

What do you think of Zhao’s comments? Let us know your thoughts below!


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