As traditional institutions proactively reduce exposure to cryptocurrencies in response to the ecosystem collapse in 2022, Binance CEO Changpeng “CZ” Zhao believes the move could have a potentially negative impact on such traditional financial players.
The collapse of major crypto companies like FTX and Terraform Labs reduced investor confidence and forced the traditional market to reassess its strategies for entering the crypto ecosystem. While the reluctance of traditional players to deter crypto adoption in the near term, CZ argues that the decision could backfire over the next two decades.
as they have really prevented traditional financial players from adopting the technology and will likely cause them to fall further down the adoption curve which could have an existential impact on them 10-20 years from now. ♂️
— CZ Binance (@cz_binance) January 27, 2023
According to CZ, traditional financial players who choose to slow crypto adoption will lag far behind the adoption curve over the next 10 to 20 years, stating:
“[The lack of crypto adoption] can have existential implications for [traditional financial players] in 10-20 years.”
CZ, along with other crypto entrepreneurs, believes that the actions of players like Sam Bankman-Fried have set the industry back several years, as he said, “Regulators are rightly going to be looking at this industry much, much harder, which is likely is a good thing. To be honest.”
CZ’s long-term bet on the fate of crypto naysayers has been supported by investors slowly recovering from the traumas of 2022. The overall positive sentiment is supported by a slow but steady bull run that has brought Bitcoin (BTC) prices back down the range from $15,000 to well over $23,000 at the time of writing.
Related: Binance Charity will award over 30,000 Web3 Scholarships in 2023
Amid growing allegations of insider trading, Binance informed Cointelegraph of a zero-tolerance policy. Speaker:
“Each employee is subject to a 90-day lock-up period on any 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 lasted 30 days, which has now been extended to 90 days.
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