Binance CEO reflects as exchange turns 6 — ‘Never goes smoothly’

Binance CEO Changpeng Zhao wrote a letter addressed to the exchange’s users, reflecting on the past crypto winter and outlining the main trends shaping up in the industry as the company celebrated its sixth birthday.

In the letter, Zhao highlights some of the company’s challenges along the way. Executives say that in January 2018, the company saw a new record for user signups. However, it was followed by a market decline. Nonetheless, the Binance executive noted that during this bear market, his team learned the importance of “careful financial management.”

We wouldn’t be where we are today without all of you, our community.

To show our appreciation, we are holding an event #BinanceTurns6 community gathering around the world and want you to join!

Learn how ➡️

— Binance (@binance) July 9, 2023

In the company’s second crypto winter, the CEO of Binance spoke about the company’s investment in the collapsing Terra crypto project and the bankrupt crypto exchange FTX. Zhao wrote that the company saw its initial $3 million investment in Terra Classic (LUNC) jump to $1.6 billion before falling close to $0 in 2022. He added that the company exited completely from its investment in FTX in its early stages, more than a year before the crash.

The incident opened up more regulatory scrutiny in the space, with Binance being grouped with FTX. Zhao wrote:

“Even then, some regulators or news outlets tried really hard to group Binance and FTX together. To that end, I’ll just say: We are different. Not all investment firms on Wall Street are Madoff.”

Despite the problems he faces, the CEO of Binance noted that he will continue to put his users first and protect their interests.

Related: Bitcoin bull run in: Binance CEO Changpeng Zhao reveals when

Apart from reflecting on the journey of the exchange over the years, Zhao also outlined some of the trends that are currently taking shape in the space. According to executives, traditional finance coming into the arena will ease institutional crypto adoption, decentralized finance (DeFi) will continue to increase, and more people will interact with its products, while regulated exchanges will continue to grow despite the uncertainty in the market. At the moment.

“It is quite clear that countries that get this right first will enjoy enormous advantages over countries that don’t, for centuries to come. We are at an important moment in history,” Zhao wrote.

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