Binance CEO Says Many Crypto Players ‘Get Distracted’ by Money
Changpeng Zhao said it’s important to focus on the technology.
DAVOS, Switzerland — Those in the crypto industry should focus on the fundamentals of crypto technology rather than get distracted by the money in the sector, Binance CEO Changpeng Zhao told an audience at the World Economic Forum's annual meeting here on Wednesday.
“When the tide recedes, all the hype goes away, and it’s the fundamentals that matter,” Zhao said as he spoke remotely by a video link. “In our industry, we’re so close to the money … so many people get distracted by that, and that’s all they focus on."
Binance, which is the world's largest crypto exchange by trading volume, has come under scrutiny after accounting firm Mazars retracted the company’s “proof-of-reserves” report, which sought to verify the exchange’s holdings.
Last week, Binance admitted that its stablecoin, BUSD, wasn’t always fully backed with reserves.
In the Davos' speech, Zhao reiterated his belief that the development of crypto as a new default payments system has to be gradual and that the concept behind the technology won’t be erased.
“We actually need to proceed slowly and carefully and steadily, so that we don't cause major disruptions,” he said. “It’s not about any single coin, blockchain or exchange, it’s the fundamental technology that’s being evolved and will continue to evolve.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.