Binance CEO lists four elements that crypto exchanges need to succeed

Binance CEO lists four elements that crypto exchanges need to succeed

By DRIFA_DRAFT | The Bullish Times | 12 Jun 2020


Exchanges should focus on more than one or two regions - a global perspective is needed, says CZ

Binance CEO Changpeng Zhao, known as CZ, spoke about the importance of cryptocurrency exchanges with a global presence, in a recent interview with CoinTelegraph. He also described what he believes to be the four elements necessary for successful encryption exchanges

CZ explained that while most crypto exchanges claim to be global, they generally end up focusing too much on one or two regions. From manpower and offline events, to customer service and available languages, these exchanges concentrate all operations in these regions and tend to renounce the global mindset, as most of their customers end up coming from their target regions.

“If the founders did not live and work in different parts of the world, it is very difficult for them to have a global view. If you have a global mindset, the rest is execution. Execution is also super difficult ”, described the challenges of having a global view.

True to his word, CZ operates Binance on a global level. The company was founded in China and eventually moved to the Cayman Islands and Seychelles.

The CZ presented four elements necessary for the success of cryptographic exchanges, along with the prerequisite for having a global mindset.

CZ said that having a sustainable business model is a key factor in the success of any crypto exchange. “Business owners need to assess whether they have a successful business model with a clear path to profitability before rapidly increasing its size or rapidly increasing the size of the globe,” clarified CZ.

The second element is the ability to adapt products according to the needs of the local market, said CZ. It is important to understand the role of cryptocurrency in the market and encourage users accordingly.

The third element needed for a crypto exchange is to work closely with regulators and local governments to ensure that it meets all regulatory standards and that local users can negotiate without worries. This is particularly important because encryption laws are still in progress and it is important to reassure regulators and users about product security.

Finally, it is important that crypto exchanges understand that the industry is still in its infancy and the adoption rate is very low. Thus, it is the responsibility of the sector's agents to contribute not only to the growth of their products, but also to the growth of the sector. They must "boost the massive adoption of cryptocurrencies and increase the crypto industry in general," he concluded.

 

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