• Changpeng Zhao (CZ), the CEO of Binance, recently suggested that the failure of certain crypto projects in 2022 will have a significant impact on the traditional finance system.
• Zhao believes that the TradeFi institutions’ reduced commitment to cryptocurrency will put them behind the adoption curve and have existential consequences within the next decade or two.
• CZ’s new forecast came after the crypto domain experienced massive downfall in the past year.
The crypto market has been experiencing a roller coaster ride in the past few years, with its share of highs and lows. This past year, however, the industry experienced a massive downfall, with the bankruptcy of some of the leading platforms, such as Terra Labs, Voyager Digital, Celsius Network, Alameda Research, and FTX. This has led to a decrease in crypto adoption by TradeFi institutions, and left them wary about the digital currency domain.
In response to this, Changpeng Zhao (CZ), the CEO of Binance, the world’s largest cryptocurrency exchange, has raised new expectations regarding traditional finance. According to the latest tweet thread from CZ, the centralized financing system is expected to have catastrophic consequences.
CZ further stated that the failure of certain cryptocurrency projects during the previous year has posed a challenge for traditional financial players to adopt the crypto technology. As a result, the TradeFi institutions are now behind the adoption curve, which could have existential consequences for them in 10–20 years, as per Zhao.
Moreover, Zhao believes that the short-term impact of the few failed crypto projects last year has hampered the growth of the crypto industry. However, the industry is already seeing a recovery and the long-term effects of the collapse will be even more significant.
The crypto market is rapidly advancing, and it is important to keep up with the new technology. CZ’s prognosis shows the importance of embracing the digital currency domain, and its potential to disrupt the traditional finance system. This is something that TradeFi institutions must consider if they are to remain competitive in the years to come.