As traditional institutions proactively reduce their exposure to cryptocurrencies in reaction to the collapse of the ecosystem in 2022, Binance CEO Changpeng “CZ” Zhao believes that this move could have a negative impact on these traditional financial players.
The collapse of major crypto companies, such as FTX and Terraform Labs, reduced confidence among investors and forced traditional markets to reevaluate their strategies for entering the crypto ecosystem. While the reluctance of traditional players is a barrier to crypto adoption in the short term, CZ says the decision could backfire over the next two decades.
because they really hampered traditional financial players to use technology, and will likely cause them to be further behind in the adoption curve, which could have existential implications for them in 10-20 years. ♂️
– CZ Binance (@cz_binance) January 27, 2023
According to CZ, in the next 10-20 years, traditional financial players who choose to slow the adoption of crypto will be placed behind the adoption curve, which states:
“[The lack of crypto adoption] can have existential implications for [traditional financial players] in 10-20 years.”
CZ, along with other crypto entrepreneurs, believes that the actions of actors like Sam Bankman-Fried set the industry back a few years because he said, “Regulators will rightly examine this industry, harder, which might be a good thing. Honestly.”
CZ’s long-term bet on the fate of crypto naysayers is supported by investors who have been slow to recover from the trauma of 2022. The overall positive sentiment is supported by a slow but consistent bull run, which has brought the price of Bitcoin (BTC) from the $15,000 range to over $23,000 when write.
related: Binance Charity provides more than 30K Web3 scholarships in 2023
Amid insider trading allegations, Binance told Cointelegraph about its zero-tolerance policy. According to a spokesperson:
“Each employee is required to hold 90 days for any investment, and Binance leaders are required to report their trading activity on a monthly basis.”
In 2018, Binance’s insider trading prevention policy included a 30-day period, which has now been extended to 90 days.