Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.
The world of web3 is expanding and advancing much faster than one would expect, with several units such as NFT, blockchain, avatars, metaverse, and cryptocurrency building the envisioned future. And the cryptocurrency exchange, Binance, is on a quest to ensure it remains the leader and confidant in the world of alternate currencies.
Over the past few weeks, the world and users of cryptocurrency were dealt a huge blow when the then world’s second largest cryptocurrency exchange by volume, FTX, filed for bankruptcy. With the whole drama unfolding, one thing which existing and potential buyers of the digital currency feared the most came true: breach of trust. When a potential mega-bailout of Sam Bankman-Fried’s FTX by Binance failed, the latter is now the undisputed leader in the space with a volume of $4,953 trillion as reported by CoinGecko.
However, Changpeng Zhao, by large referred to as CZ, the co-founder and CEO of Binance, has his own share of backlash. Recently, speaking at the Abu Dhabi Finance Week, Turkish-American economist Nouriel Roubini questioned why Binance was given a green light to operate in the United Arab Emirates and included CZ in the category of ‘bad actors’.
While the Binance figurehead gave a fitting response, he had his priorities set. And that is to build trust among cryptocurrency users through transparency. Following the FTX debacle, ‘Proof of Reserves’ emerged as a means to maintain and declare fund and investment health and safety, with Binance sharing details pertaining to its hot and cold wallet addresses.
In tweets to his 7.8 M followers, CZ revealed adopting practices to gain public trust, including Merkle trees. The said data structure technology will be used for verification and synchronization with every leaf containing cryptographic data hash.
CZ is confident that FTX’s downfall will not be the end of the cryptocurrency spectrum, with his latest tweet as of the time of publishing this article sharing the same.
It’s not the end of crypto. Far from it. It’s the beginning of a new chapter.
Just noted today’s crypto price for future reference. pic.twitter.com/WvOhqkncYK
— CZ ? Binance (@cz_binance) November 24, 2022
“It’s not the end of crypto. Far from it. It’s the beginning of a new chapter. Just noted today’s crypto price for future reference,” he tweeted.
On Friday, Binance introduced the Web3 Industry Recovery Initiative along with key space players to commit over $1 billion to support promising and highest quality companies. Additionally, they provided the public address for the web3 company’s initial commitment of BUSD 1 B at 0x043a80999cEe3711D372FB878768909fbE7F71E6. CZ also shared about Tigran Gambarayn and Matt Price joining the Binance team to fight cybercrime, insinuating privacy and protection of its users and funds.