As traditional institutions proactively reduce exposure to cryptocurrencies in response to ecosystem collapse in 2022, Binance CEO Changpeng ‘CZ’ Zhao believes the move could potentially have a negative impact on these traditional financial players.
The collapse of major crypto platforms, such as FTX and Terraform Labs, not only reduced investor confidence, but also forced the traditional market to reassess its strategies for entering the crypto ecosystem. While the reluctance of mainstream players is having a chilling effect on crypto adoption in the short term, CZ says the decision could backfire on her within the next two decades.
because they have really prevented traditional financial players from adopting the technology, and will likely cause them to fall even further behind the adoption curve, which could have existential implications for them in 10 to 20 years. ♂️
— CZ Binance (@cz_binance) January 27, 2023
According to CZ, over the next 10-20 years, traditional financial players who choose to slow crypto adoption will be placed far behind the adoption curve, stating that:
“(Lack of crypto adoption) may have existential implications for (traditional financial players) 10-20 years from now.”
CZ, along with other crypto entrepreneurs, believes the actions of players like Sam Bankman-Fried have set the industry back a few years, as he said, “Regulators will rightly be looking at this industry a lot. , a lot harder, which is probably a good thing, to be honest.”
CZ’s long-term bet on the fate of crypto naysayers has been buoyed by investors who have slowly begun to recover from the traumas of 2022. Overall positive sentiment is supported by a slow but steady bull run, which has brought Bitcoin (BTC) prices range from $15,000 to well above $23,000 at the time of writing.
Related: Binance Charity will provide over 30,000 Web3 scholarships in 2023
Amid growing accusations of insider trading, Binance informed Cointelegraph of a zero-tolerance policy. According to the spokesperson:
“Each employee is subject to a 90-day hold on all investments they make, and Binance executives are required to report all trading activity on a quarterly basis.”
In 2018, Binance’s insider trading prevention policy included a 30-day period, which has now been extended to 90 days.