Binance CEO Outlines Three Keys to Crypto Success
The founder and CEO of leading cryptocurrency exchange Binance is opening up about the process his company goes through before backing a coin and adding it to the platform.
Changpeng Zhao told CNBC’s Crypto Trader it takes an intense amount of research and consideration of three key fundamentals.
“In order to learn about a project you have to look at the white paper, read it, understand it. Play with the product. Binance is slowly no longer listing concept coins. We’re too big. If you just have a concept, you can list on a smaller exchange first, and we can monitor the performance of your business. People come up to me and say, ‘Hey CZ, I’ll give you $20 million to list my coin.’ I’m like, ‘I don’t need that money, thank you.”
The company is willing to list coins without charging anything, the CEO theorizing on how much money Binance charges to add a coin.
“What we do is we don’t negotiate, and we don’t ask for a price. The project team, when they submit an application, they tell us what they want to pay. And you can say zero, which we will accept. And we have listed coins that have said zero.
You have to have a good product, a good service. I think our service is ok. To be honest, it’s not perfect. I really want to improve it. But I think in the industry, we’re kind of good compared to others. But I think the other big thing is your ethical behavior.”
Those ethics are one of the main reasons why Binance is successful, according to Zhao. When companies act responsibly, Zhao says people will find out and spread the word.
“There’s a lot of dodgy stuff that goes on in the crypto space. We want to be the most ethical, most powerful exchange. So that’s our philosophy. We really want to protect users. We actually don’t say that a lot publicly. But people understand it. People are smart. So people tell other people we’re a good exchange.
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