Binance CEO Changpeng Zhao, best known as CZ, continued to share his thoughts on DeFi in a recent interview where he stated, “In the long-term, I think DeFi will replace CeFi.”
Binance Enters DeFi
And Binance, the world’s first centralized crypto exchange, is ready to enter the DeFi age according to CZ.
CZ discussed how Binance would need to evolve to match the needs of the growing cryptocurrency world. While Binance continues to operate as a centralized exchange, it must shift towards a more decentralized position.
Binance Innovation Zone
Some of Binance’s recent ventures into the DeFi space include its focus on funding DeFi projects under the Binance Labs moniker. Many projects have launched in the Binance Innovation Zone, though some have lasted longer than others. The Binance Innovation Zone is described as follows:
Our team has created the Innovation Zone, which will allow users to trade newer token offerings from the comfort of their Binance account, while at the same time protecting less suited users from being exposed to the “risk” that comes with trading them.
What led us to create the Innovation Zone is our dedication to giving Binance users a safe place to trade new, innovative projects.
By forming the Innovation Zone, we can provide our users with a safer space for accessing newer tokens that will likely have higher volatility than other tokens. This way, we are able to prevent more untoward scenarios for our users who just want to access certain projects.
Even though Binance is the world’s largest centralized exchange, CZ sees Binance’s future as focused on finding new ideas and projects. He states that “even though we run one of the largest centralized exchanges in the world, it’s not something we have to really hold onto. We are more interested in innovation.”
Zhao pointed to Binance’s $100 million war chest to spend in DeFi ventures and protocols not on anybody’s radar. “There are always more opportunities in the future than there was in the past,” he stated to the crowd.
