Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange platform Binance, said that decentralized financing is not going anywhere, although many of Defi’s projects are showing signs of being in a bubble.
In an interview on November 17 with the Russian news agency RBK, Zhao stated that “many of Defi’s projects are already in a bubble, and I also think that there are some signs of a bubble in the DeFi industry, but that does not mean DeFi will eventually disappear completely. ”
Zhao further said that the DeFi industry has a lot of potential for growth, noting that DeFi is still popular among the ongoing Bitcoin (BTC) rally. The CEO also emphasized that Initial Coin Offerings, or ICO, was called a bubble back in 2017, but that a number of ICO-based projects, including Binance, were still doing well:
“Companies make new tokens, and issue them as a reward. It’s not a long story. But I do not think DeFi is going anywhere. So far, with Bitcoin’s popularity growing again, DeFi is still popular. We believe DeFi has great growth potential. ”
However, Zhao said some of the DeFi projects “can not last that long”, although the industry provides a number of incentives through the development of Defi’s crop and DeFi’s liquidity.
Zhao also mentioned that cryptocurrencies like Bitcoin are the best form of money, describing them as “the money of freedom for millions of people around the world.” The CEO predicted that the cryptocurrency market could grow by 100,000% as digital assets are expected to become more popular than fiat currencies.
As he sees a future for DeFi, Zhao notes that there are obstacles in the industry’s path to regular adoption. He said in August that centralized exchanges would remain popular until decentralized exchanges became more user-friendly.