Although decentralized cryptocurrency exchanges are becoming more user-friendly these days, centralized exchanges will also remain popular. In this article we are going to know the Binance Co-Founder idea about DeFi. In this interview CZ commented about DeFi popularity and success.
The centralized exchanges such as Binance are looking to find ways in order to survive with innovations like Decentralized Finance (DeFi). Changpeng Zhao, the Binance Co-Founder believes that however DeFi is innovative and getting popular these days, it could not be a challenge for regular exchanges.
CZ commented about DeFi; Centralized Exchanges will remain Popular
Recently, CZ had an interview with the YouTube channel, Boxmining. He mentioned in his interview that DeFi is not a competitor for centralized exchanges. In fact, it just makes the space more attractive. In addition, he noted that automatic market makers (AMM) is some kind of interesting invention.
He commented that DeFi brings more liquidity to the market. As a result, people trade more and easier. I think automatic market makers are the aspect that will stay long. I think it’s a really great invention.
Binance invested in DeFi
CZ Mentioned that not only Binance supports DeFi, but also is working on some projects about DeFi and AMM.
CZ believes that DeFi is still a new space in cryptocurrency world. It still needs time to be developed enough. Most of DeFi projects fail and only a few will succeed. He recommends people to be careful when they invest in DeFi projects. He believes however most of the projects will fail, a few that success will succeed widely.
Binance invested large amount of money in DeFi. Furthermore, the exchange listed a lot of DeFi tokens on its platform. CZ believes that still many users prefer centralized exchanges. For this reason, Binance will keep provide services what people like to use.
CZ commented that people still like to use regular exchanges. They feel much better when they use username and password to access their account and also can have access to customer support. It seems a bit complex to take a backup from their keys, which is required for DeFi exchanges.