Binance is 6 years old and its CEO assured that the commitment of companies like BlackRock to cryptocurrencies supposes the validation of the technology and the industry.
Binance CEO Changpeng Zhao.
Binance CEO Changpeng Zhaowrote a letter to users of the exchange, in which he reviewed what happened in the crypto winters and spoke about the challenges that will lie within the industry as the company celebrates its sixth anniversary.
Regarding what is to come, he said that TradFi, companies like BlackRock, Citadel and Fidelity are betting big on cryptocurrencies. “This assumes technology and industry validation. They will facilitate institutional adoption of cryptocurrencies. Since institutional investors own the largest share of the equity market, with hundreds of trillions of dollars, even a single digit conversion percentage in crypto will easily multiply the size of the current crypto market,” he specified.
For his part, he said that DeFi will continue to accelerate. “New wallet technologies are making it easier for users to hold their crypto assets for themselves. More people will use DeFi products and interact directly with blockchains. This also offers financial access to people where TradFi (or banks) have no presence. I strongly believe that DeFi will be bigger than CeFi in the next 6 years or so,” he revealed.
In turn, believe that regulatory clarity and regulated exchanges will continue to grow. “As much uncertainty as there is right now, progress is being made at a faster pace in many countries to provide clarity for the crypto industry. It is absolutely clear that countries that get this right sooner will have a huge advantage over those that don’t, during centuries. We are at a pivotal moment in history,” Changpeng Zhao said.
In the letter, Zhao also highlighted some of the challenges the company has faced throughout its history. The executive said that in January 2018, the firm saw new user registration records. However, a decline in the market followed. Despite this, the Binance executive noted that during this bear market, his team learned the importance of “prudent financial management.”
Source: Ambito
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