The CEO of the largest crypto exchange Binance made some observations on Twitter this April 5. He spoke about the usefulness of decentralized crypto platforms (DEX). Here’s what CZ thinks of DEXs.
Can we consider a hybrid version of the Binance exchange?
As Binance CEX appears to be losing its dominance in the crypto market, CZ talks about the usefulness of DEXs. The CEO said the market needs exactly more decentralized crypto exchange platforms. He made this statement while noting that DEXs can be flawed and that he himself runs a CEX. Also, he cited two very well-known DEXs, namely PancakeSwap and Uniswap. He pointed out that the former concentrates most crypto users. Meanwhile, the second holds the majority of the total locked value.
One user commented on CZ’s post: “Why not make Binance a hybrid exchange? Self-custody like on DEXs, but with the performance and liquidity of centralized platforms like Binance“. CZ replied:Easier said than done. It is also necessary to ensure the security of the funds. It must be ensured that the counterpart of the transaction is paid and that no one can defraud the system, i.e. real-time settlements. The throughput of the blockchain is not yet sufficient for this“.
Are popular exchanges safer than new ones?
A user compared popular decentralized exchanges, such as PancakeSwap, and newer crypto exchanges. He said that the former seem more reliable and safe than the latter.
Zhao responded to the comment stating that DEXs can also be hacked. He asserted: “Yes, DEXs are also victims of hacks, code exploits, etc.“.
This April 6, Changpeng Zhao brought the community’s attention to the usefulness of crypto and the uselessness of AI. He explained : “Blockchain/crypto is a neutral technology that can improve efficiency and reduce transaction costs. Yet people are concerned about regulating it. AI is a technology that could invade our world and render us useless. But no one cares. I am in favor of AI, just as I am in favor of innovation. But, there must be a balance everywhere“. CZ’s comments agree with those of Mike Novogratz who thinks that AI is more to be feared than crypto.
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