Binance founder Changpeng Zhao (CZ) stated in an AMA (Ask Me Anything) session that centralized exchanges (CEX) and decentralized exchanges (DEX) will continue to coexist for many years to come.
CZ also stated that global cryptocurrency adoption is much lower than commonly believed, adding, “The true depth is probably below 1%.”
According to CZ, CEX and DEX platforms are not direct competitors but serve different user profiles. CZ stated that using DEX platforms requires technical knowledge and a high level of security discipline, adding that protecting one’s own wallet is still a specialized field.
CZ stated that those wishing to actively trade on DEXs should use a “clean” and secure computer, adding that assets in wallets could be at serious risk if infected with malware.
However, CZ noted that CEXs offer a simpler user experience with features like email, passwords, and customer support, and that non-technical users initially prefer centralized exchanges. He added that users who gain experience may eventually switch to DEXs.
CZ stated that the global crypto ownership rate is estimated to be around 8–10%, but these individuals hold less than 10% of their total assets in cryptocurrencies. In light of this data, he indicated that the true share of crypto in global wealth remains below 1%.
Therefore, CZ stated that there is still significant growth potential in the sector, adding that it is not accurate to speak of meaningful competition between CEX and DEX at this stage, as the market is large enough to accommodate thousands of players.
CZ urged projects and ecosystem teams to “focus on their own work instead of looking at others.” Stating that a good product wins in the long run, CZ said that short-term fluctuations in token price shouldn’t be given too much importance. He argued that the security of user funds, low cost, fast transactions, and a good user experience are the real success criteria.
He also stated that projects issuing tokens should regularly update their products, share their roadmap transparently, and maintain frequent communication with the community.
CZ, who openly stated that he is not an expert in memecoin trading, indicated that investors who buy memecoins based on his own posts will most likely lose money. He noted that long-lasting memecoins have a strong cultural base and loyal community, and that new projects in this area are riskier. He advised, “If you don’t know what you’re doing, don’t get in.”
CZ stated that the current bear market has different dynamics than past cycles. He considered the US’s more supportive stance towards crypto as a positive development in the long term.
However, CZ stated that it is impossible to make a clear prediction about the market direction in the short term, and that investors should carefully evaluate their own risks. “I believe the sector will do well in the long term,” CZ said, adding that the focus should be on creating lasting value rather than focusing on daily price movements.
*This is not investment advice.
