In the last monday (31/07) During one electrifying AMA, CZ answer important questions about projects, the possibility a new stablecoin by Binance, the rising the challenges and opportunities for the crypto market, and much more. In this article, we delve into the highlights of the AMA, capturing CZ's vision for the crypto world and what lies ahead. 🚀
Question of EljaBoom: EljaBoom congratulates CZ on the Dubai license and suggests allowing BNB holders to have a small part in education, supporting projects, and participating in governance. This could potentially increase BNB's value.
Answer from CZ: CZ appreciates the idea and mentions the need to explore implementation details. He highlights two possible levels of support: voting for projects and participating in Binance Labs investments. However, CZ cautions about potential regulatory and division issues when deciding which projects to support. Overall, he finds the idea good and worth exploring.
Question of The Crypto Blade: The Crypto Blade asks CZ about his thoughts on the future of cryptocurrencies and their potential impact on the financial industry.
Answer from CZ: CZ acknowledges the question and describes cryptocurrencies and blockchain as one of the biggest technologies with significant future impacts. He compares it to AI, which also has a considerable impact but affects different aspects of human society. CZ emphasizes that blockchain will directly impact the financial sector first and eventually other industries. He mentions that there is already plenty of information available online regarding potential impacts.
Question of Sona | PolkaBridge (Sonali_Rawat12): Sonali asks CZ about his tweet stating that Bitcoin is more stable than stable coins and questions what prompted him to make that tweet.
Answer from CZ: CZ clarifies that his tweet was a joke, referencing Bitcoin's price being stuck between $29,000 to $30,000 for an extended period, which he humorously termed as "more stable than stable coins."
Follow-up Question from Binance: Binance asks CZ about some stable coin news that came out recently and if he has anything to share regarding that.
Follow-up Answer from CZ: CZ informs that Binance listed FD USD, a USD-based stable coin issued by a Hong Kong custodian with a trust license. He mentions a partnership with a company named "First Digital" related to FD USD. CZ also teases another upcoming partnership with another stable coin but refrains from announcing it just yet. Binance is actively supporting multiple stable coins, making the ecosystem more decentralized and widespread.
Question of ₿en Todar (BenTodar): Ben asks CZ about the recent halt of withdrawing money directly from Binance to UK-based bank accounts and inquires if there will be another third-party payment solution to allow direct Fiat withdrawals to banks.
Answer from CZ: CZ acknowledges the issue and confirms that Binance is actively looking for other solutions for UK or European users. However, many traditional financial payment service providers are hesitant to work with crypto or Binance, which has made the search challenging. Negative news and litigations have impacted the business and users, but Binance is working with new partners and exploring various avenues to address the situation. Despite facing obstacles, CZ remains optimistic that they will be able to restore services soon and is also working to resolve the underlying issues to improve the situation.
Question of Cryptoholic (adibemon): Cryptoholic, representing a group of traders from Bangladesh, asks CZ if he has any information about whether the Bangladesh government is planning to legalize cryptocurrency trading, as it currently remains uncertain whether it is legal or illegal in the country.
Answer from CZ: CZ states that he doesn't have much private information about specific governments' views on crypto. Most of the information available is consistent with what is publicly known, and Binance is transparent about the countries it operates in. He suggests that the traders from Bangladesh may have better knowledge about their own government's stance on cryptocurrencies.
Question of Sean | IDO Analysis (SeanAnalysis): Sean asks for CZ's opinion on the evolution of community fundraising in the crypto space. He mentions how it has progressed from ICOs in 2017 to IEOs in 2019, and he is curious about CZ's perspective on the next evolution of community fundraising.
Answer from CZ: CZ believes that community fundraising is one of the most significant innovations in crypto. It enables entrepreneurs worldwide to raise funds by issuing tokens and receiving support from global backers. Before crypto, entrepreneurs from less developed countries faced disadvantages due to limited access to venture capital. ICOs, despite some issues and scams, were a powerful tool that allowed people to raise funds and attract investment from small investors.
CZ mentions that Binance launched IEOs through Launchpad, a centralized platform to help projects raise funds during bear markets. In bull markets, it was challenging to convince projects to join Launchpad, as they could raise funds on their own with higher valuations. However, during bear markets, projects returned to Launchpad for assistance. Binance is selective with projects going through Launchpad, vetting them for around nine months before conducting a large-scale token sale.
CZ expresses optimism about the continued growth of community fundraising, although the exact form it will take remains uncertain. Binance aims to support good projects in the crypto space through their Launchpad program.
Question of Casten.Artzz (Castanoartzz): Castanoartzz asks about the possibility of purchasing Binance merch, like T-shirts, hoodies, etc., directly through the Binance app instead of using external platforms like Waves.
Answer from CZ: CZ initially misunderstands the question but later clarifies that Binance merch, including T-shirts, hoodies, etc., is not sold by Binance. They believe that selling the merchandise would decrease its value and prefer to keep it exclusive and hard to get. Binance is not a fashion or physical shop, and handling logistics and shipping for merchandise is not their focus. They aim to give out the merchandise to strong supporters within the Binance community.
Question of Ola Ξlixir (thegreatola): Ola asks about Binance's plans to launch the Binance crypto card in Africa and how it will benefit African users in buying and spending cryptocurrencies.
Answer from CZ: CZ explains that the Binance card is a convenient way for users to spend their cryptocurrencies directly without needing to convert them to fiat. The card relies on traditional card issuers like Visa and MasterCard, as well as local banks that partner with Binance to offer the service. However, the availability of the card is not yet widespread due to challenges in finding willing local bank partners, which has been impacted by negative news and regulatory complexities. Despite the slow progress, Binance remains committed to expanding the service in the future.
Question of Jason Maza (JasonMaza): Jason asks CZ about the sectors in the crypto space that he is most excited about, whether it's DeFi, NFTs, gaming, or others.
Answer from CZ: CZ mentions that he does not like to predict which sector will be the biggest or most interesting in the future. He keeps an open mind and follows the flow of trends rather than attempting to pick trends. Binance has specialized teams for different areas like blockchain, DeFi, NFTs, etc., who keep track of trends and provide him with information. They monitor different business units and use bar charts to identify trends. CZ emphasizes the importance of execution and having the right team to catch and act on emerging trends in the crypto space.
DeFi Made Here asks CZ about Binance's plans to develop its own stablecoin and mentions that there are new stablecoin designs being developed, such as a delta-neutral stablecoin backed by on-chain assets. They inquire whether Binance has considered creating a stablecoin that can be utilized on the exchange to increase trust and eliminate concerns about other stablecoins like USD or USDT.
CZ responds by acknowledging the different types of stablecoins in the market and the challenges they face. He highlights the lack of audit reports for USDT and the risk associated with regulated stablecoins. Binance has partnered with Paxos for a regulated stablecoin and has diversified its approach by working with various stablecoin projects, including algorithmic stablecoins and Euro-based stablecoins. The goal is to see which one gains traction and grows larger. Binance also aims to work with different governments and regulators worldwide, including in Africa, where they have significant educational initiatives. While Africa may not be leading in terms of regulatory frameworks at present, Binance is committed to working with all countries in the region.
Don Cameron asks CZ about the efforts of projects like Bubble Maps and Arkham in creating transparency within the DeFi space and eliminating bad actors. They also inquire about Binance's role in supporting transparency in DeFi.
CZ responds by stating that it is challenging to assess whether other projects are doing enough to create transparency since many actions are not public. He believes that most projects in the space are likely making efforts to engage with regulators and promote crypto adoption. Binance, being a prominent player in the industry, is often the first thing regulators see when looking at the crypto space. They actively engage with regulators and work to explain their products, even though it can be a complex task due to their extensive coverage of products.
Regarding real-world asset tokens, CZ acknowledges that trust and verification of the underlying assets have been challenges in the crypto community. However, with government backing and wider adoption, there may be more trust in real-world asset tokens. He also points out that real-world assets' lower price fluctuations make them less attractive for trading, leading to lower liquidity. Nevertheless, CZ hopes that increased adoption and tokenization of various assets will eventually lead to a larger market and better liquidity.
Irina ₿. Heaver: Question: Why is tokenization of real-world assets gaining huge demand now, while it faced challenges and lack of success in the past? What can be done differently to ensure its success this time?
CZ Binance: Answer: The demand for tokenization of real-world assets is increasing due to government backing, wider adoption of crypto, and growing trust in the technology. However, real-world assets' price stability makes them less attractive for trading, leading to lower liquidity. To ensure success, the market needs increased adoption and tokenization of various assets to create a larger market with better liquidity.
The final question comes from Punk, who asks about Binance's approach to competition in the crypto space. CZ responds by emphasizing the importance of collaboration and supporting other platforms. He believes that competition is healthy and that Binance works with other players in the crypto space despite overlapping in certain areas. CZ encourages other platforms to launch new products and blockchains and mentions Binance's willingness to support such initiatives.
The conversation ends on a lighthearted note with a fun question about Twitter's rebrand to "X." CZ admits that he has not gotten used to the new branding yet and finds it a bit awkward. However, he is generally supportive of the improvements made to the platform's functionality under Elon Musk's leadership.
Overall, the AMA session touched on various topics related to Binance's plans, products, collaborations, and perspectives on the crypto industry.
