Considering that traditional institutions are proactively reducing cryptocurrency exposure as a reaction to ecosystem crashes in 2022, Binance CEO Changpeng “CZ” Zhao believes this decision could potentially negatively impact such traditional financial players.
The collapse of major cryptocurrency companies, such as FTX and Terraform Labs, has reduced investor confidence and forced the traditional market to reevaluate its strategies towards the crypto ecosystem. While the reluctance of incumbents is a deterrent to cryptocurrency adoption in the near term, CZ argues that the decision could backfire in the next two decades.
This has really hindered traditional traders from adopting the technology and will likely drive them even further down the adoption curve, with possible existential implications for them 10-20 years from now. ♂️
as they really hampered traditional financial players to adopt the technology, and will likely cause them to be further behind on the adoption curve, which may have existential implications for them in 10-20 years time. ♂️
— CZ Binance (@cz_binance) January 27, 2023
According to CZ, in the next 10-20 years, traditional financial players slowing down the adoption of cryptocurrencies will find themselves far behind the adoption curve:
“[La mancata adozione delle criptovalute] could have existential implications for [gli operatori finanziari tradizionali] in 10-20 years”.
CZ, along with other cryptocurrency entrepreneurs, believes the work of figures like Sam Bankman-Fried has set the industry back a few years, as he said: “Regulators will rightly scrutinize this industry much, much harder, which is probably a good thing, to be honest.”
CZ’s long-term bet on the fate of crypto naysayers has been buoyed by investors as they have slowly started to recover from the 2022 shocks. Overall positive sentiment is supported by a slow but steady upward runwhich brought the price of Bitcoin (BTC) back from the $15,000 range to well above $23,000.
Amid growing allegations of insider trading, Binance informed Cointelegraph of a zero-tolerance policy. According to the spokesperson:
“Every employee is subject to a 90-day hold on any investment made, and Binance executives are required to report any trading activity on a quarterly basis.”
In 2018, Binance’s insider trading prevention policy had a 30-day period, which has now been extended to 90 days.
