Changpeng Zhao said that he is aware of the consequences of tapping into most of the rapidly growing decentralized finance (DeFi) within the Binance Smart Chain. He believes it has the potential to cannibalize the world’s largest crypto exchange, but risks have to be taken when you want to maintain your reputation.
Maintaining the reputation of being the world’s largest cryptocurrency exchange takes too much wherein you have to be always one step ahead of your competitors, says Changpeng Zhao, the Chief Executive Officer of Binance Smart Chain.
Currently the exchange is trying to dominate the crypto market by allowing heavy investments to be brought within the exchange for catering the rapidly growing DeFi frenzy. The company’s new venture into the trending DeFi fanaticism has helped it to make progress towards replicating some of the features, which are available in the Ethereumblockchain, and turned out to be productive for the developers who are involved in creating decentralized lending and trading applications based on blockchains.
Zhao also said that however the present belongs to DeFi yet he cannot ignore the possibility that one day the existence of DeFi would also threaten the largest and most popular crypto exchange firms like Coinbase, Huobi, and OKEx as well as of his own. He also stated that currently the DeFi projects such as SushiSwap, Curve, Uniswap, and Balancer are dominating the entire cryptocurrency industry wherein the trading volumes of the industry are continuously growing at an uncontainable pace.
In an interview recently recorded with CoinDesk, the company’s CEO said that for the time being the top priority of the exchange is to get much of the DeFi in order to fulfill the demands of its customers. This, in return, is helping the company to grow and is providing much-needed support in times of crisis. But in the long run, the exchange wants to stick to its utmost priority of pushing decentralization, he said.
While commenting on the current state of the exchange, Zhao said that the exchange had to go through a lot because Ethereum created a great challenge for the exchange. This created a healthy competition, and to be in the competition, the exchange had to safeguard its brand at all costs. He said that they are successfully protecting the company’s brands while also taking the competition back to Ethereum.
Zhao also explained the future policies of the exchange. He stated that the objective of the exchange was not to be regarded as the “Ethereum Killer” within the crypto industry. Instead, the ultimate aim of the exchange, as per him, was to provide an alternative platform. This platform will not only be equivalent to Ethereum but also guarantee cheaper fees. These affordable fees will benefit the developers and users who are not happy with Ethereum’s higher transaction fees.