An important statement came from Binance CEO Changpeng Zhao. Also known as CZ, he said that some countries have a bad demand from them. So what was that request and why was it a bad idea? Which countries has CZ held official talks with so far?
CEO of Binance, the world’s largest cryptocurrency exchange Changpeng Zhaomade a remarkable statement on his Twitter account. Namiother CZ, in his statements on Twitter some countries He said he had a request from them. This demand was the privileged pool of liquidity. According to CZ, the idea is not good at all.
Nureddin Nebati and CZ recently held a video conference. had carried out. Sharing about this meeting, Minister Nebati said, that they made assessments on the agenda he had said. However, the details of the meeting were not included. The statement made by CZ, on the other hand, suggests that the request in question may have been expressed during the meeting. Any official authorities no explanation came.
“Some countries want privileged liquidity”
Looking at CZ’s statement on Twitter, some countries privileged liquidity areas We see them talking about what they want. That is, the countries in question a special border They wanted it brought. Binance Its CEO explains why this is a bad idea:
CZ’s Twitter post
Some countries from our interactions require liquidity. This is a bad idea for several reasons. Great liquidity, best consumer protection one of its mechanisms. Protects against market manipulation and volatility.
Suppose we divide the liquidity into 180 countries. Big investors shaking the markets 180 times easier and will significantly increase volatility. In this case, arbitrageurs will try to stabilize the prices. However, these are not as efficient as liquidity pools and they earn money for the transactions they make. This money consumers paid by.
Moreover; There is another thing that people misunderstand: Exchange users never choose a counterparty. They only trade with the order book. You can think of the order book as a broker. Great liquidity for users offers better price. This is a very important form of consumer protection. Real financial impact for users. Binance has the largest liquidity globally. So the best form of consumer protection…
CZ held talks with some countries
You may remember that Binance’s CEO, CZ, had meetings with many countries in the past days and Turkey was one of these countries. What was reflected in the media from his meeting with Minister Nebati was only a visual and there was no information about the content of the meeting. details were not given.
In the statements he made after his meeting with Minister Nabati, may be of interest to Turkey. was considered. Although CZ does not name the country in his statements on the subject, there is a possibility that he may have made such a statement due to his recent meetings.
The countries that CZ has talked to recently are as follows;
- Kazakhistan
- Ivory Coast
- El Salvador
- Mexican
- Turkey
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