As traditional institutions proactively reduce exposure to cryptocurrencies in reaction to ecosystem crashes in 2022, Binance CEO Changpeng “CZ” Zhao believes this move could potentially negatively impact such traditional financial players.
The collapse of major cryptocurrency companies, such as FTX and Terraform Labs, reduced confidence among investors and forced the traditional market to reevaluate its strategies to enter the cryptocurrency ecosystem. Although reluctance from traditional players deters cryptocurrency adoption in the short term, CZ argues that the decision could backfire in the next two decades.
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. ♂ï¸
— CZ Binance (@cz_binance) January 27, 2023
According to Zhao, in the next 10-20 years, traditional financial players that decide to slow down cryptocurrency adoption will fall far behind the adoption curve, stating that:
“The lack of cryptocurrency adoption may have existential implications for traditional financial players 10-20 years from now.”
Zhao, along with other entrepreneurs in the crypto space, believes that the actions of players like Sam Bankman-Fried have set the industry back a few years, as “regulators are rightly going to scrutinize this industry.” much, much more in-depth, which is probably a good thing, to be honest.”
Zhao’s long-term bet on the fate of cryptocurrency detractors was supported by investors slowly beginning to recover from the traumas of 2022. The overall positive sentiment is supported by a slow but consistent bull run, which has pushed Bitcoin (BTC) prices back from the $15,000 range to well above $23,000 at press time.
Amid growing accusations of insider trading, Binance informed Cointelegraph of a zero tolerance policy. According to the spokesperson:
“All employees are subject to a 90-day hold on any investment they make, and Binance leaders are required to report any trading activity quarterly.”
In 2018, Binance’s insider trading prevention policy included a 30-day period, which has now been extended to 90 days.
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