Zhao week, at the “Consensus: Singapore 2018 Summit”, CryptoGlobe interviewed Zhao Changpeng, one of the famous figures in the digital currency industry (although he preferred his nickname “CZ”), he is the world’s largest encrypted exchange currency. Ann’s founder and CEO. During the interview, we discussed a lot of interesting topics, including how he stepped into the digital currency field; how he viewed the “transaction mining” business model; the interest of the currency in the decentralized trading platform; the digital currency like BitMEX The role of derivatives trading; on digital currency legal currency transactions; stable currency, transaction amount fraud, the listing process of currency security and the future of currency security, and when to usher in the next bull market for bitcoin .
Zhao Changpeng began his trading engineer career at the Tokyo Stock Exchange, Bloomberg Tradebook and Fusion Systems. In 2013, after learning about Bitcoin, he worked for companies such as Blockchain, OKCoin, and BijieTech.Finally, in July 2017, he established a new digital currency exchange, Binance.
In less than eight months after the release of Zhao (Ann currency coins) by ICO, Zhao Zhangpeng has succeeded in this venture company into the world’s largest encryption currency exchange, currency Ann earned $ 200 million in the first quarter, profitability More than the largest bank in Germany.
(Hereinafter, CG refers to CryptoGlobe, CZ refers to Zhao Changpeng)
CG: How did you get into the field of cryptocurrency?
CZ: Initially, I learned about cryptocurrencies from Bobby Lee and Ron Cao in 2013. There weren’t many related documents at the time, so I read the white paper to understand it and then went to some meetings. In 2013, after I attended the second meeting in Vegas, I thought, “I want to do this full time,” so I quit my job and jumped into this field.
CG: The competition on the exchange is very fierce now. Do you think of “transaction mining” as a threat to your business model? Or do you think it is damaging to the ecosystem?
CZ: I think it’s obvious that it’s breaking, but it’s not a threat. The transaction volume of the exchanges that have been tried has dropped. This is a complicated way to raise funds. The law of supply and demand tells us that because there will always be more platforms for issuing tokens, you can almost guarantee that the price will drop over time, so this method is not very correct.
CG: Coin is trying to go to the centralized exchange, do you think it will become bigger?
CG: Of course, I think the decentralized exchange is a big trend in the future, but it will take a few years to reach it, and we are committed to its Zhao . It is not very clear who will be the winner. For the foreseeable future, I think the transaction volume will not be so high, so it is more like an experiment, I think more is innovation, we are still in the initial stage of this industry.
At the moment, most of the funds are legal currency, so I think the best breakthrough point is the practice currency digital currency exchange.
CG: The regulations have brought some friction to the digital currency legal currency transactions. What progress have you made in creating a legal currency trading platform?
CZ: Actually it looks good. It is indeed a long time for the exchange to be approved because in fact, we do not control some of these parts, especially related to bank accounts, barriers to entry, etc., so this is a bit tricky. This is tricky than currency trading because, in the currency trading, we control everything, the blockchain will not reject us, and things will go smoothly.
In Singapore, we are doing internal testing. If all goes well, we can release it publicly in a few months. In all respects, we are fully compliant with regulations. But I think that very good progress has been made around the world with some more Zhao regulations. And the issuance of a stable currency for regulatory approval was born, which is very beneficial to the French currency exchange.
CG: Stabilizing coins surge, like Circle USDC, CabonUSD, Gemini dollar, do you have a preference? How do you see the impact of stable currencies on the digital currency market?
CZ: I think the stable currency is very strong, and people don’t understand the impact and impact of the regulated stable currency. I made a joke at lunchtime, and if you understand its impact, the price of Bitcoin will now rise. Stabilizing coins is a good entry for French currency and spread to the entire digital currency channel, so I think this is a very positive thing. We always agree with the stable currency and want to help it improve and grow. I have never had a special preference in this regard, and I basically don’t comment on them which is good and which is not good. If I say it, people may buy it according to this. Doesn’t it become a market manipulation?
We want to do as much as we can to support them, and then ultimately decided by the market. In real life, there are many challenges to the operation of stable coins that we have not seen. Is it easy to understand customers? To what extent should people be accepted outside their respective countries? Deposits and withdrawals are fast, but is it limited? Can they manipulate one million, ten million, or even one hundred million users? These Zhao are not things that can be understood by looking at the instructions.
CG: There are many reports that some exchanges estimate that there are as many as 60% of false transactions. Obviously, this false transaction volume needs to be regulated. In this regard, what do you think, at the same time, do you think this will happen in the currency of Binance?
CZ: The way you ask questions shows that you have a lot of ideas. So, how to explain this false trading volume or is it a so-called brush trading? From the perspective of an exchange, if a trader buys from another trader and then buys it back to the other party, is this not a good thing? Moreover, you know how much trading volume you want to achieve, can you say that it is a brush trading? If you trade the number of shuffling transactions between the two accounts for $100,000 and the exchange will freeze the account, what will they do next? They will stop after they traded $99,000 each other. So, it is quite difficult to combat and standardize this problem. In fact, we should also prevent such problems through many complicated mechanisms. Now, if there is an exchange that does this by itself to get high volume, this is very bad. No exchange will admit that they do this. But some did, and we don’t have money. There are also other exchanges that use trading mining methods to stimulate the increase in trading volume. We have been resisting this practice. But this is not an easy task, because it can really activate the volume quickly.
Another problem is the currency manipulation, right? Therefore, many people only choose to use the currency. When they want to buy a currency, they only need to set a market order. Of course, compared to other exchanges, our trading price is high. So, we seem to have a lot of high orders. So from which aspect, can we define this as market manipulation? Other exchanges, when they list a new currency, if many people buy it, then the price of the currency will rise. At this time, many people will profit from arbitrage. So, it is difficult to give a clear explanation. But we are working hard to combat such behavior.
We are not perfect. The coin is equipped with many project tokens, and the project party wants to hire a market maker in order to increase the transaction volume. In the traditional market, there are also market makers. Sometimes, the other team will tell Zhao that sometimes it will not. So it is really difficult to judge by ourselves alone. For us, we are only seeing a series of influxes of orders, but we are really working hard to resist this behavior.
CG: For the currency – what is the process of reviewing the token? Is this process transparent?
CZ: I have written a long article on LinkedIn on this issue. Basically, we will let the project side submit a lot of information and then put them in a black box. Fundamentally, we hope to find quality projects that can be developed over the long term. We have no strict requirements. Because when we release the requirements for the currency, someone will immediately create the appearance of these requirements. For example, if we say that the number of people in the Telegraph group needs to reach 10,000, then they will directly pay for it or buy 10,000 Twitter fans. Therefore, we do not need these open standards. We will look at the project team; we want to understand the history behind a team; focus on the product itself; see a product that works under ideal conditions, and the reactions that users use in real-world scenarios. We will also look at their source code on Github; join their community; ask questions in the Telegraph group to see what level of support they give.
So far, the results are quite good. We did make some mistakes. Especially in the market in the past six months, sometimes the tokens we traded on the line did not perform very well. But so far, in general, I think the tokens we have on the line have performed very well. Therefore, I feel that these results are not clear.
CG: What do you think is the status of the currency security club in the next five years?
CZ: In the next five years, I think the scale of this industry will become even bigger. So we want to provide some important services about the industry. Now, we have a good exchange, and we are expanding the currency and decentralized exchanges. We hope to continue to be a key player in the trading market. I think the wallet is not only fun but also important. Therefore, we also worked with Trust Wallet, which is a very good product. They didn’t do any marketing, so we wanted to develop wallet space. I hope it will become a popular wallet, we may do multiple wallets, as well as hardware wallets, institutional wallets…
We have entered some areas we are not familiar with through the lab program, where we will invest in some token projects and help them with the circulation of tokens and online transactions, etc. and help them with the pass economy. We also want to promote education and philanthropy, these are our social responsibilities. So we will continue to do those things, I think the industry will become bigger in the next five years. The tide will surge. And what we have to do is to move on. I think we will be a very powerful ship!
CG: So, do you think there will be 1000 times growth?
CZ: Of course! I think it will grow even more. So, I keep the tweet. But if you ask me, when do we get to this goal, I don’t know. But when we get to that goal, I will forward that tweet.
CG: When do you think the next bull market is?
CZ: I don’t do any analysis for the market. Because anything I say is like a very careful observation. When the public saw the news, they would buy and sell according to what I said. As a manager of an exchange, I will affect the price of the currency. But if you look at the historical chart, it is very clear that we saw a very strong $6,000 support in 2018, and in 2015, the support level was $200. I look at this every year, so I don’t think we are in a bear market now. Of course, if you look at the week or the month, it is indeed a bear market. It only costs $20,000 a week… I always look in the long run. I never trade. I have always bought and held.
Therefore, I think that the bull market will hit again at any time. From the historical point of view, October to December is a good time. Before Christmas, it is usually the month when the market is rising frequently, but I am not saying that this year will be like this, or not. I don’t make predictions. I just gave the previous experience.
[su_quote]This article is writing on 27 Sept 2018 based on information available online & news portal. If you feel it’s outdated or incorrect, please write here to update it. Mail us: support@coinworldstory.com Or Whatsapp Us- +13098896258[/su_quote]
