{"id":514186,"date":"2022-12-30T13:00:01","date_gmt":"2022-12-30T18:00:01","guid":{"rendered":"https:\/\/wncen.com\/?p=514186"},"modified":"2023-03-08T07:25:42","modified_gmt":"2023-03-08T07:25:42","slug":"crypto-holiday-past-future-binance-cfo-zhou","status":"publish","type":"post","link":"https:\/\/wncen.com\/interview\/crypto-holiday-past-future-binance-cfo-zhou\/","title":{"rendered":"A Crypto Holiday Special: Past, Present, And Future With Ex-Binance CFO Wei Zhou"},"content":{"rendered":"

2022 is coming to an end, and our staff at NewsBTC decided to launch this Crypto Holiday Special to provide some perspective on the crypto industry. We will talk with multiple guests to understand this year\u2019s highs and lows for crypto.<\/strong><\/p>\n

Related Reading: A Crypto Holiday Special: Past, Present, And Future With Ex BNY Mellon David Schwed<\/a><\/div>\n

In the spirit of Charles Dicken\u2019s classic, \u201cA Christmas Carol,\u201d we\u2019ll look into crypto from different angles, look at its possible trajectory for 2023 and find common ground amongst these different views of an industry that might support the future of finances. <\/strong><\/p>\n

Zhou: \u201cIt won\u2019t be business as usual for centralized exchanges. For one, the days of commingling users and the exchanges\u2019 assets are long gone.\u201d<\/strong><\/p>\n

We are ending our institutional round with Wei Zhou; he worked as Chief Financial Officer for three years at the largest crypto exchange worldwide, Binance. Above the rest, this company and its current CEO, Changpeng \u201cCZ\u201d Zhao, heavily impacted the nascent industry and will continue to exercise influence in the coming years.<\/p>\n

Zhou: \u201cBitcoin, just like the Internet, will survive any storm that comes its way; this I have no inkling of doubt about.\u201d<\/strong><\/p>\n

Zhou reviews the biggest moment in 2022 from his unique perspective. In addition, he talks about the fundamentals that will keep crypto alive and on track to fulfill its destiny. This is what he told us:<\/p>\n

Q: What\u2019s the most significant difference for the crypto market today compared to Christmas 2021? Beyond the price of Bitcoin, Ethereum, and others, what changed from that moment of euphoria to today\u2019s perpetual fear? Has there been a decline in adoption and liquidity? Are fundamentals still valid?<\/strong><\/p>\n

A: The crypto market has certainly changed a lot in the past year.<\/p>\n

Collapse of key industry players <\/strong><\/p>\n

I think the biggest change this year has been due to the collapse of some key industry players, from Celsius, 3AC to BlockFi and most recently FTX. With billions of dollars affected, investors have become cautious. The collapse of these giants has served to remind us to be prudent and diligent with our crypto investment decisions. Users should conduct thorough research and abstain from entities whose licensing and regulatory status is unclear. I believe that the situation will change in 2023 and that investor confidence will resume, but we can\u2019t afford to forget the lessons learned this year.<\/p>\n

Liquidity affected but adoption will continue to grow<\/strong><\/p>\n

With the collapse of a big market maker like FTX, liquidity in the market was affected as several exchanges relied on it. Investors have also pulled quite a bit of their money from exchanges which further escalated the liquidity crunch.\u00a0 Speculative trading may have pulled back, but for those to whom crypto was more focused on use cases like value transfer, web3 gaming and financial inclusion, crypto adoption will continue to surge especially in the Philippines.<\/p>\n

Q: What are the dominant narratives driving this change in market conditions? And what should be the narrative today? What are most people overlooking? We saw a major crypto exchange blowing up, a hedge fund thought to be untouchable, and an ecosystem that promised a financial utopia. Is Crypto still the future of finance, or should the community pursue a new vision?<\/strong><\/p>\n

A: This year\u2019s market downturn has fueled crypto skeptics and several mainstream media houses who have become re-energized in their fight against crypto. This narrative has put doubts in the minds of investors. However, most people are overlooking that Bitcoin is designed to be a decentralized electronic currency.<\/p>\n

Crypto is still the future of finance. If you recall, when the dot-com bubble burst, there were all manner of questions about the viability of the Internet as a technology and the companies building on it. But look at Amazon, Facebook, Google and others today – they are defining the world we live in. This is because, despite the shake-ups with the market players, the underlying technology was fundamentally transformative. Bitcoin, just like the Internet, will survive this winter.<\/p>\n

Q: If you must choose one, what do you think was a significant moment for crypto in 2022? And will the industry feel its consequences across 2023? Where do you see the industry next Christmas? Will it survive this winter? Mainstream is once again declaring the death of the industry. Will they finally get it right?<\/strong><\/p>\n

A: I would point to the FTX collapse as a landmark moment. Its impact has been and will continue to be felt in the industry.<\/p>\n