Binance founder Changpeng Zhao (CZ) discussed Binance’s journey, Ethereum’s problems, the meme token boom on Solana, and the future of crypto in an interview with Colin Wu.
Childhood and Immigration
CZ recalled his childhood in China fondly. His parents were teachers, and their earnings provided a comfortable life. His father’s international work trips added extra income.
“We weren’t rich, but I never felt a lack of money. I was happy with everything,” said CZ.
At age 12, his family moved to Canada. The financial situation didn’t worsen, but they fell into a lower economic class compared to their middle-class status in China.
His mother worked as a seamstress, while his father became an assistant professor.
“We lived in a small house, but it was actually bigger than our home in China,” CZ added.
Education and Career
CZ dropped out of university in his final year to accept a full-time job in Japan after an internship.
“I initially thought it would just be a few months, but the offer was too good to pass up. Two years later, I never went back,” he explained.
To avoid visa issues, he later obtained a remote diploma from another university.
Binance’s Success
CZ attributed Binance’s rapid rise (founded in 2017) to:
- 20 years of experience in tech and trading;
- A strong team and community support;
- A customer-first approach;
- The ICO boom.
“At the time, Coinbase, OKCoin, and Huobi focused mostly on Bitcoin, ignoring ERC-20 tokens. Binance fully embraced them and became the go-to ICO platform.”
Early on, Binance prioritized customer support, answering inquiries within 24 hours—unlike other exchanges, which took months.
Additionally, Binance covered $6M in user losses from delisted tokens—a risky move, as it represented 40% of its initial $15M funding.
“This, plus our product and timing (and some luck), helped Binance grow so fast,” CZ said.
Challenges and Innovations
Security was Binance’s top priority from day one.
“For the first four months, all Binance withdrawals were processed manually,” CZ revealed.
Performance was another major challenge:
“Our matching engine was fast, but sign-ups, KYC, and withdrawals created bottlenecks.”
CZ acknowledged listing challenges for small tokens on major exchanges. DEXs now dominate meme tokens, but CEXs can still succeed by:
- Creating “innovation zones”;
- Supporting assets in Web3 wallets.
On meme token booms, CZ speculated:
“Solana had strong FTX ties. After FTX’s collapse, many from its ecosystem turned to pump-and-dump schemes.”
Regulation and Binance.US
CZ believes crypto regulation will evolve, with large CEXs prioritizing compliance.
“Smaller exchanges often avoid restrictions that industry leaders must follow.”
He expects a more favorable US regulatory environment under Trump, helping Binance.US recover.
“At its peak, Binance.US had 40-50% of Coinbase’s volume.”
Ethereum’s Issues
Ethereum Foundation and Vitalik Buterin have faced increasing criticism. CZ attributes it more to PR missteps than real problems.
“Ethereum is still strong. Solana grew fast, but Ethereum remains second in market cap.”
CZ dismissed Tron founder Justin Sun’s advice to Buterin:
“Sun rides hype well but Ethereum doesn’t need his advice.”
On Buterin’s “sole control” comment:
“He’s blunt, but his contribution to Ethereum is undeniable.”
Crypto Market Outlook
CZ avoided Bitcoin price predictions but is bullish:
“Bitcoin hasn’t peaked yet.”
He expects Trump’s policies to positively impact crypto.
“Crypto investors are too big to ignore for any future administration.”
In September 2024, CZ finished his US prison sentence for money laundering and regulatory violations tied to Binance.
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