Changpeng Zhao, the founder of Binance, expressed during an AMA (Ask Me Anything) session that both centralized exchanges (CEX) and decentralized exchanges (DEX) are likely to coexist for many years ahead.
He further emphasized that the global adoption of cryptocurrencies is significantly lower than what many people think, stating, “The actual depth is probably under 1%.”
CZ explained that CEXs and DEXs cater to different types of users rather than being direct competitors. He pointed out that utilizing DEX platforms requires a certain level of technical expertise and a strong commitment to security practices, noting that safeguarding one’s wallet remains a specialized area.
For those interested in trading on DEXs, CZ recommended using a “clean” and secure computer system. He warned that wallets could be at substantial risk if they become infected with malware.
On the other hand, he highlighted how CEXs provide a more user-friendly experience through features like email logins, password protection, and customer support. This simplicity tends to attract non-technical users initially; however, as they gain experience over time, some may transition to using DEXs.
CZ estimated the global rate of cryptocurrency ownership at approximately 8–10%, but noted these individuals typically hold less than 10% of their total assets in digital currencies. Given this information, he asserted that the real proportion of crypto within global wealth remains below 1%.
This indicates significant growth potential for the industry according to CZ. He remarked it would be misleading to claim there is meaningful competition between CEXs and DEXs at this point since there’s ample room in the market for numerous participants.
CZ encouraged projects and ecosystem teams to concentrate on their own developments instead of comparing themselves with others. He stated that ultimately it’s about creating quality products; short-term fluctuations in token prices should not overshadow long-term success metrics such as user fund security, cost-effectiveness, rapid transactions, and overall user satisfaction.
Additonally,CZ advised projects launching tokens should consistently update their offerings while transparently sharing roadmaps with regular community engagement.
While acknowledging his lack of expertise in memecoin trading,CZ cautioned investors who buy memecoins based on his social media posts are likely setting themselves up for losses.He mentioned successful memecoins usually have strong cultural foundations along with dedicated communities,and new entrants into this space carry higher risks.His advice was clear: “If you’re unsure about what you’re doing,dive away.”
CZ also observed distinct dynamics within today’s bear market compared to previous cycles.He viewed America’s increasingly supportive stance towards cryptocurrency as beneficial over time.
Nevertheless,CZ stressed predicting short-term market movements remains challenging,and investors must assess their own risk tolerance carefully.“I believe our sector will thrive long term,”he said while urging focus on building enduring value rather than fixating solely on daily price changes.”
*This does not constitute investment advice.