The founder of Binance, CZ believes DeFi is the future as the idea is strong, but centralized exchanges will still be popular thanks to their user-friendly features as we are reading more in our Binance news today.
With Decentralized Finance gaining steam, exchanges such as Binance are always co-existing with innovations such as DeFi. The founder of Binance, CZ believes DeFi is an innovative space, and investing in this space will not be a challenge for the regular exchanges. In an interview with the Boxmining YouTube channel, CZ said that the DeFi will make the space even more attractive. He pointed out to the automatic market makers as a fascinating invention:
“I think DeFi is a really innovative space and I think that’s really good. Initially, when people talk about DeFi they think about lending so you can lend your coins but now, you lend the coins to provide liquidity. When the liquidity is good, people trade more and trade more easily. I think automatic market makers are an interesting invention and it’s really simple. That aspect of it will stay.”
CZ added that Binance is very supportive of DeFi and it has a lot of projects around it. However, as much as he believes in it, he did say that it’s still a new field and that most of the projects fail. If you are investing in this sector, keep this in mind:
“I want to say most projects in DeFi will fail; it does not mean DeFi is not good, but that only a few will succeed. The few that succeed will succeed wildly.”
Binance is investing in Defi and already listed many tokens on the exchange. While the platform believes in this sector, Changpeng Zhao said that most users prefer the centralized exchanges so that they will continue providing products for people to use:
“I think we go by user numbers to see what they want to use and push it. Today the majority of users still choose a centralized exchange because it’s much easier to deal with an email and password and have customer support than saying do a backup of your own keys and if you lose it you’re screwed. I do think in the figure if we can make the secure backup easier and useable, I think DEX is going to be the future. So we will continue to invest in the DEX and also form multiple projects. Right now, centralized exchanges are more popular by user numbers and we just want to provide products that people use.”
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