The CEO/head of the leading cryptocurrency exchange Binance, Changpeng Zhao, recently talked about the four key criteria to follow in order to build a truly global business for the crypto exchange model. In short, the Binance head noted that exchanges need to have an open mindset which is global – in order to expand internationally.
Talking to one popular crypto media outlet in the cryptonews, the CEO of Binance known as CZ lent his expertise on setting up a global cryptocurrency exchange and the how-to of doing that. He also outlined four key criteria to follow in order to ensure success.
What the Binance head pointed out is that exchanges need a “global mindset” instead of focusing on just one particular region and limiting their international presence.
“Many crypto exchanges claim they are a global exchange, but if you look at them closely, they are focused in one region, usually where the majority of their team is,” he said.
Also, he noted that “achieving a true global mindset” is a difficult task.
“If the founder(s) have not lived and worked in multiple places in the world, it’s very hard for them to have a global view. If you have a global mindset, the rest are execution. Execution is also super hard.”
The Binance head Changpeng Zhao laid out four key elements for crypto businesses to focus on when attempting to become global, inspired by all the Binance news and success stories before. As he said:
- Having a sustainable business model. “Business owners need to evaluate whether they have a successful business model with a clear profitability path before growing its size rapidly or blitzscaling to the globe,” CZ clarified.
- Knowing the audiences’ preferences. “When exchanges are serving multiple markets, they have to make sure the product offering is tailored to the local markets and keep on providing value or incentives for users to stay with the business.”
- Being in touch with regulators. “A global crypto exchange should work closely with local governments or regulatory agencies so that the local users can trade on the platform without concerns.”
- Knowing the industry (and that it is still in its infancy). There is roughly one crypto user out of 1,000 people,” the Binance head Changpeng Zhao observed.
Ultimately, CZ elaborated that it is not a universal blueprint for exchanges to go global. Instead, they should learn “to constantly adapt to changes, put users first and ensure profitability.”
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