Binance CEO: Ignoring Crypto Could Have “Existential Implications”

2022 will go down in the history books of crypto as the year of the downfall of many crypto-related companies and projects.

In May, the drama started with the decline of the Terra ecosystem (LUNA). After this, both crypto lending platform Celsius and crypto hedge fund Three Arrows Capital ran into financial problems, eventually leading to bankruptcy for both parties. In November, crypto exchange FTX could also be added to the list after it had filed for bankruptcy.

crypto adoption

The collapse of these companies has not only reduced confidence among crypto investors, but it has also forced the traditional market to reevaluate their strategies for entering the crypto ecosystem.

Binance CEO Changpeng Zhao (CZ) argues that the reluctance of traditional players will deter crypto adoption in the short term. Despite this, he believes that traditional players’ decision to ignore crypto could backfire for them in the long run.

Namely, he said the following in a tweet:

“Because they’ve really hindered traditional financial players from adopting the technology, and are likely to cause them to fall further behind the adoption curve, which could have existential implications for them 10-20 years from now.”

Earlier you could read in the crypto news that CZ believes that the actions of actors like Sam Bankman-Fried set the overall industry back a few years. He said the following about this shortly after the bankruptcy of FTX:

“I think we’ve been set back a few years. Regulators will rightly be scrutinizing this industry much, much more rigorously, which, frankly, is probably a good thing.”

Adoption depends on regulation

You could recently read that Tom Duff Gordon, vice president of international policy at Coinbase, believes that crypto has the potential to mainstream achieve adoption. However, according to him, this depends on regulations that “can inspire confidence among retailers”.

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