Binance CEO Changpeng Zhao Says Many Crypto Players ‘Get Distracted’ By Money

Focus on the fundamentals of crypto technology and becoming a reliable player in finance rather than getting distracted by the money in the space, said Binance founder and CEO Changpeng “CZ” Zhao, holding court at the World Economic Forum in Davos.

“When the tide recedes, all the hype goes away and it’s the fundamentals that matter,” Zhao said. “In our industry, we’re so close to the money … so many people get distracted by that and that’s all they focus on,” he added.

Still by far the largest crypto platform globally, Binance has come under scrutiny after accounting firm Mazars retracted the company’s “proof of reserves” report which sought to verify the exchange’s holdings.

Binance also recently admitted that its stablecoin BUSD, wasn’t always fully backed with reserves.

CZ again reiterated his belief that the development of crypto as a new default payments system has to be gradual and that the concept behind the technology won’t be erased.

“We actually need to proceed slowly and carefully and steadily, so that we don't cause major disruptions,” he said. “It’s not about any single coin, blockchain or exchange, it’s the fundamental technology that’s being evolved and will continue to evolve.”