Changpeng Zhao Advocates for Decentralized Crypto Trading to Boost Industry Diversity
Changpeng Zhao, the CEO of Binance, has recently expressed his support for developing more decentralized exchanges (DEXes) in the crypto industry.
Despite running the world’s largest centralized exchange, Zhao believes that DEXes are essential for the growth of the crypto ecosystem.
In a recent Twitter thread, Zhao emphasized the need for more DEXes, citing PancakeSwap and Uniswap as examples of successful DEXes. He noted that PancakeSwap has the most users while Uniswap has the most TVL.
We need more DEXs. Pancake has most of the users. Uni has most of the TVL. That's still "too centralized"… (I know, imagine that coming from me. 😂) Need more options.
PancakeSwap v3 Now Live on BNB Chain, Ethereum https://t.co/tARoeCCr4m
— CZ 🔶 Binance (@cz_binance) April 5, 2023
However, Zhao believes the industry still needs more options, as these DEXes are too centralized.
The timing of Zhao’s remarks coincides with the launch of the newest version of PancakeSwap, a well-known decentralized exchange (DEX), which is now available on both BNB Chain and Ethereum.
The move is expected to boost PancakeSwap’s user base and liquidity, further highlighting the demand for DEXes in the industry.
Despite the benefits of both decentralized exchanges (DEXes) and centralized exchanges (CEXes), Changpeng Zhao, the CEO of Binance, dismissed the notion of a hybrid exchange that combines the self-custody of DEXes with the liquidity and performance of CEXes.
According to Zhao, such a platform would be challenging to develop, given the current limitations of blockchain technology. He emphasized the need for real-time settlements requiring high blockchain throughput and fund security.
While DEXes offer greater security and transparency than CEXes, they are still vulnerable to attacks. Zhao encouraged the development of better security measures for DEXes, such as smart contract audits and bug bounties. Zhao also acknowledged that DEXes are not completely immune to hacks or code exploits.