Yi He, co-founder of Binance, recently addressed concerns about the future of the cryptocurrency industry and Binance’s role in navigating current challenges. In a detailed post on Binance Square, Yi He discussed the growing pessimism within the blockchain space, regulatory hurdles, and Binance's vision for the future.
Growing Pessimism in the Crypto Market
Yi He acknowledged the increasing wave of pessimism surrounding blockchain and cryptocurrency, both from within the industry and external observers. She noted that while negative news tends to attract more attention, this has led to exaggerated concerns about the future of the industry.
"Bad news is more likely to make headlines, and bad news is also more likely to get more traffic and attention," Yi He explained, adding that concerns about the industry’s future have been magnified by the current economic climate.
She also addressed the uncertainty among crypto investors and industry insiders, noting that some have even questioned whether the cryptocurrency era is coming to an end. However, she emphasized that blockchain and cryptocurrency are still in a period of evolution and maturing, particularly as major financial institutions become more involved.
Binance’s Position and Regulatory Challenges
Yi He outlined Binance's growth, comparing the early days of the cryptocurrency industry to the "Wild West," where early adopters saw massive gains during periods of economic expansion. However, she explained that as the market matured, it became more competitive, and profitability decreased as more players entered the space.
Reflecting on Binance’s position, Yi He emphasized that the exchange has grown alongside its users, striving to balance innovation with regulatory compliance. "Binance is not a child anymore, so we need to reconcile with the world, comply with regulations, fight money laundering, and follow the existing rules of the traditional financial industry," she said.
Yi He acknowledged the challenges of operating in a highly regulated environment but reiterated that compliance is essential for the continued growth of both Binance and the broader cryptocurrency market. "We hope that the blockchain industry is not a playground for niche players. We hope that Binance can serve one billion users in the future. We hope to become the infrastructure of the future world."
Coin Listing Process and Community Criticism
Addressing community concerns about Binance’s coin listing process, Yi He admitted that Binance has faced criticism for listing projects backed by venture capitalists (VCs) and meme coins. She explained that Binance’s listing process is thorough and involves multiple layers of review, including business, research, and compliance checks. However, she noted that Binance had been slow to recognize the potential of some meme coins like Shiba Inu and PEPE, which gained popularity after their prices skyrocketed.
"We missed many of the projects. In the early days, we did not pay enough attention to meme coins... This resulted in us getting slapped in the face," she admitted.
Yi He reassured the community that Binance takes reports of insider trading and other unethical practices seriously. She outlined the company’s internal controls and emphasized that Binance isolates information to prevent conflicts of interest. "If there is information leakage or insider trading suspicion, Binance will immediately initiate legal proceedings to transfer the relevant personnel to the judicial authorities."
Looking to the Future
Despite the challenges facing the cryptocurrency industry, Yi He expressed optimism about the future. She pointed out that the market is evolving, with traditional financial products such as Bitcoin and Ethereum ETFs gaining traction. "Yes, the big ones are coming, but the way they come is different from the way everyone imagines."
In closing, Yi He emphasized the importance of ongoing innovation and collaboration within the industry. "Everyone can only see their own future. What you believe in is what you will build. We will continue to explore the future, just like the first day we entered this industry."
