Wednesday, January 19

A cryptocurrency or millions of them? Binance CEO gives his opinion

Binance, one of the world’s largest cryptocurrency exchanges, is posting a series of questions and answers with its CEO, Changpeng Zhao — better known as Binance’s CZ — on its official blog.

This past Thursday (23), the subject matter were “a cryptocurrency to dominate the market? Or millions of them?”. As Zhao only owns two cryptocurrencies, his opinion was quite surprising, despite that, it is worth noting that Binance trades a lot of altcoins.

In addition, other big names also differed from CZ’s opinions, such as Jack Dorsey, former CEO of Twitter. Which ended up sparking discussions this week involving web 3, which is crammed with private cryptocurrencies.

CZ da Binance prefere mercado aberto

Although CZ only has two cryptocurrencies in its portfolio, Bitcoin (BTC) and Binance Coin (BNB), it has revealed that it prefers the market to have millions of coins. As examples of benefits, he cites the very BNB that financed the emergence of his exchange.

Binance’s CEO explains that the possibility of creating a cryptocurrency is a great incentive for the project to grow. As an example, he cited BNB, which valued 3,000 times, that is, the 15 million dollars raised are now worth 90 billion.

In addition to the financial benefit, CZ also points out that a new cryptocurrency also creates a new ecosystem. In this way, holders are more interested in following up and contributing to the project.

Finally, as pointed out by the Livecoins in November, this cryptocurrency competition could be great for the sector, after all companies will look to offer better services if they want their currency to appreciate.

not everyone agrees

Despite this, not everyone agrees with the existence of thousands of cryptocurrencies, especially controlled by companies and/or with great influence of venture capital funds.

A good example of this is Jack Dorsey, CEO of Block (former Square), who this week had a falling out with Binance’s own CZ and also with the company a16z when talking about web 3.

For Dorsey, it is necessary to focus on the one currency that truly belongs to everyone, Bitcoin. According to him, all the others have a lot of influence from few players, in addition, there is also the fact that these coins can be easily censored by governments.

The debate is clear, it remains open and the cryptocurrency market already has 11,995 currencies listed on the CoinGecko platform, for example. Even so, in the text written by the CEO of Binance, he ended by asking people to continue creating their tokens to change the world.

“For the above reasons, I believe people will continue to create new tokens for their projects. And there will be millions of tokens. Like start-ups, most will fail. But those who succeed will be tremendously successful and will create a lot of value for the world.”

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