Recently, the number of registered users on Binance has exceeded 200 million, and in response to this, an AMA was held. Binance co-founder He Yi answered questions regarding the recent incidents of wash trading and theft, the contradiction in listing the FDV project, and the standards for delisting zombie coins.
Compiled by: Wu Shuo Blockchain
Recently, the number of registered users on Binance has exceeded 200 million, and an AMA was held in response to this. Binance co-founder He Yi answered some of the questions that everyone is concerned about, including the recent incidents of wash trading and theft, the contradiction in listing the FDV project, and the standards for delisting zombie coins.
In addition, He Yi mentioned that he writes emails to CZ every day and also needs to take notes while reading. His daily life mainly involves exercising, making phone calls (conference calls), and putting children to sleep, which is quite mundane.
He Yi jokingly mentioned "girlfriend coin," indicating that Binance is trying to bring in some normal business models and will endure some ridicule and failure in the process.
The audio-to-text transcription was done using GPT, so there may be errors. The complete original text can be listened to on Xiaoyuzhou or YouTube.
Does Binance have any new developments to share regarding user security?
He Yi: First of all, I want to say that there is no absolute security when it comes to security, and we must remain vigilant at all times. This applies not only to exchanges but also to the management of our own assets, whether using hardware wallets or hot wallets.
Binance has suffered losses in the early stages and has indeed made significant investments in security. Currently, our investment in security is an ongoing process. For example, when a user's assets were stolen due to clicking on a third-party plugin, we have raised our risk control standards and levels in this regard.
We have implemented dual risk control for wash trading. First, when there is significant price fluctuation, big data will capture information and trigger an alert, followed by manual confirmation. At that time, we captured information about price fluctuations, but because there were multiple trading pairs involved and the profit parties were not singular, the risk control judgment was not significant.
For losses caused by users clicking on plugins, we understand the users' expectations of us and hope that Binance can support them when they engage in risky operations. We have raised higher requirements for our security and risk control teams, continuously iterating our security measures.
Some users have had their assets stolen due to sharing accounts, and we can track the specific situation through complete user behavior logs. We advise everyone to avoid clicking on or sharing suspicious links, especially videos, live streams, etc. If it is necessary to click, we recommend keeping the trading account on a relatively independent and secure mobile phone, especially for users with a large number of assets.
When downloading the app, check if it is the official version to avoid downloading phishing apps. Recently, there has been a lot of panic in the community, with many different voices, such as questioning whether the trading platform is stealing from its users. We believe that a well-operated trading platform would not engage in such behavior because it is a healthy business model, and our competitors are also doing well. Such rumors would greatly damage users' trust in the entire industry. The above is a summary of the recent frequent security incidents.
How does Binance view high FDV and low circulation projects, and will it intervene in the opening price and token distribution?
He Yi: First, I would like to provide a framework, which is my personal observation and understanding, and does not represent official logic or absolute standards. The blockchain industry has currently entered a special stage, similar to the process of technology transitioning from a niche market to a mass market. For example, early technologies such as VR and 3D printing, although very popular, did not achieve large-scale application because they did not cross the chasm from a niche market to a mass market. Tesla's success lies in the commercial application of electric vehicle technology.
In the blockchain industry, what we may be building is a more decentralized and efficient microfinance system. In this system, there are mature business models for scenarios such as trading, assets, and anti-inflation. However, the greater challenge lies in how to truly help the blockchain industry move towards mass applications. Currently, there are almost no successful cases in practical scenarios such as gaming and social networking.
I hope there will be more projects on the blockchain that truly have a business model, rather than just staying in the realm of abstract concepts. The anti-VC trend and the popularity of memecoins reflect the lack of high-quality assets in the market. Many VCs invest in projects with high valuations, but these projects do not develop good business models. Airdrops and other methods are just data, and trading platforms are pressured to list projects due to user demand, but ultimately no one is truly satisfied, and everyone suffers instead.
We hope that every project will have sustained growth and a good business model, but in practical operations, trading platforms cannot control project parties and market makers. We can only provide guidance, such as hoping that project parties will airdrop more to users, but we cannot intervene in pricing and execution. When recruiting projects, we hope to find teams with low valuations and good business models, and we also recruit market makers. However, excessive demands will cause market makers to shift liquidity elsewhere.
The problem of high FDV causes pain for users and investors, except for a few project parties who profit. This industry is an emerging market, and the rules for issuing tokens can be customized. Investors and users need to spend more time researching and voting with their feet. We continue to iterate standards and requirements for project parties and market makers, but this process is a battle of wits.
We hope that there will be more friends in the market who are willing to solidly develop projects, not just launch empty projects. Real success requires withstanding human challenges. I hope that this wave of bubble will precipitate more excellent projects and assets.
In the future, in terms of investment incubation and funding, we hope that blockchain assets can be used by more entrepreneurs, rather than just locking users into airdrops and trading platform scenarios. The entire industry needs to cross the chasm.
How to maintain high passion and abundant energy?
He Yi: From personal experience, I come from a humble background and have seen the highs and lows of the world. When you see the ups and downs of this world, you will think about what you want to do in this world or what you want to leave behind. I might say that material inheritance is for your children, the continuation of DNA. But if there is a chance to truly change the world, why not give it a try? Leave something revolutionary like Elon Musk or Amazon. In fact, a person's lifetime spending is limited, and I am not someone who likes luxury goods. My greater passion lies in how to rebuild myself, break through my own ceiling, and see my own growth.
I focus on self-improvement, for example, last night I sent a message saying I slept for 6 hours and then went to exercise. I did indeed exercise and was brutally tortured by the coach. My requirements for myself can be divided into several modules:
The first is health, where exercise is not only about physical requirements but also about health.
The second is iterative self-awareness. I have recommended a book called "Lifelong Learning" on Twitter, which helps me with self-iteration. My strength lies in being able to quickly internalize the knowledge from books and link it to my own knowledge.
The third is leaving something in this world. If I can change the world, I want to try. This is why I have consistently persisted in being on the front line for many years.
If you ask me if I want to retire or be lazy, of course, I do. But I have a goal, which is to build a long-lasting company. This is not only a requirement for personal abilities but also for building the capabilities of an organization. If every senior executive at Binance can replicate my philosophy, they may be more professional in skills than I am, such as our VIP user managers being more knowledgeable about finance, and our technical team being more knowledgeable about technology. My goal is to build a strong and healthy organization that continues to grow.
In this regard, my role model is Duan Yongping, who has been very low-key but successful in the history of entrepreneurship in China. He created Xiaobawang and Bubugao, which later evolved into Vivo, OPPO, and Xiaotiancai watches. He not only succeeded in entrepreneurship but also achieved great success in investment, such as investing in NetEase and Pinduoduo. Duan Yongping's success proves that success can be replicated, and I hope that my ability to succeed can also be replicated to more people, nurturing high-potential talents for Binance and bringing good thinking, philosophy, and corporate culture to Binance.
This is what I hope to do now and what I am striving to do, and I also welcome more friends with potential and interest in Binance to join us.
How to select Launchpool and MegaDrop projects?
He Yi: We do not select projects based on Launchpool or MegaDrop, but rather choose projects first and then decide whether they are suitable for MegaDrop or Launchpool. Initially, we did Launchpad, but due to regulatory issues with token presales in many countries and regions, we switched to airdrops. We first introduced Launchpool for airdrops and found that many project teams wanted to acquire real users, and Binance's holding users are relatively more authentic.
Binance's Web3 wallet has KYC, which can prove the authenticity of users. For example, the recent ZK project was criticized because they reversed a lot of users from catnip studios. If real users were acquired through Binance's Web3 wallet from the beginning, the situation would be much simpler. Therefore, Launchpad, Launchpool, and MegaDrop are all solutions for project teams to find real users and also provide benefits to Binance users.
Sometimes, we choose to list projects because the project teams are willing to provide more airdrop allocations, but this decision is not always correct. Therefore, we constantly reflect and listen to user feedback.
For example, projects with high FDV have low circulation after listing on other platforms, experience a short-term increase, but then the price drops. There is no standard answer, such as whether circulation or deflation models are always good, it needs to be evaluated based on specific circumstances.
Our goal is to find high-quality projects with long-term development intentions or potential for success, and then decide whether to put them in Launchpool or MegaDrop. If the project team provides a low allocation, it goes into Launchpool; if they provide a high allocation, it goes into MegaDrop. Regardless of the name, the key is to help project teams acquire real users and provide benefits to Binance users.
We will adjust the project selection criteria based on market feedback to ensure the market's health and long-term development.
Does Binance have standards for delisting zombie coins? How are they managed and delisted?
He Yi: We regularly review tokens that have been listed, and the review is not limited to social media activity but also includes continuous product development, liquidity, and the presence of major negative news. In addition, we also evaluate based on regulatory requirements in various countries and regions. If we find tokens with high risk, we will label them for monitoring and spend more time observing.
Recently, the frequency of delisting has decreased, mainly because some project teams have become active again during the bull market. We have a dedicated department responsible for monitoring listed projects, including on-chain incidents, hacking events, and user feedback. When delisting, we conduct a detailed analysis to ensure that the decision is accurate and not simply based on poor project performance.
Delisting can cause harm to project teams and token holders, so we try to remain objective and strictly adhere to the standards for listing and delisting. Do not assume that some "shell" projects listed on Binance can be bought, as these projects may be delisted at any time. We strongly oppose this kind of shell buying behavior and will shut down projects immediately if discovered.
How does Binance view the comparison of market value with Coinbase? Where is the growth potential for BNB?
He Yi: First of all, I believe that Coinbase is essentially a stock security, while BNB is a token, and the two are not in the same race. Coinbase's stock cannot be used on the Binance platform like BNB. BNB not only has applications on Binance and a continuous burning mechanism but also has the support of BNB Chain.
BNB is widely used on the Binance platform and is known as the "golden shovel," used for a large number of fee deductions. Although the momentum of BNB Chain is not as strong as some large L2, L1 ecosystems, or TON's user base, compared to developer-centric public chains like Ethereum or Solana, BNB Chain has more real Web3 users and builders.
I believe that in the future, an important direction for BNB Chain is to bring blockchain technology into the lives of ordinary people, helping more entrepreneurs and developers drive the entire blockchain industry into the next stage. From this perspective, Coinbase and Binance are taking completely different paths. Coinbase is an excellent trading platform that achieves profitability through its partnership with Circle, but Binance is taking a different path in the blockchain race.
In the process of listing many projects on Binance, we empower BNB through continuous benefits and airdrops. Short-term price fluctuations do not necessarily represent anything, and we are more concerned about the team's long-term efforts and goals. The co-construction of BNB Chain and the entire community requires the joint efforts of users, the community, entrepreneurs, and developers.
Which tracks are being followed, and how do you view AI? How do you spend your day?
He Yi: I'll start by answering the question about AI. In fact, I also talked about my understanding of AI in the last AMA. I believe that blockchain changes labor relations and the distribution of benefits, while AI is a huge change in productivity. For example, many trading platforms and products operate in a multilingual environment. If AI can be used effectively, it can save a lot of translation costs while increasing efficiency. This is a specific example of productivity improvement. In the future, the productivity improvement of AI will be reflected in many aspects, including design, marketing, etc., with lower costs and higher efficiency.
AI can be divided into several modules. The application side is the most common, such as OpenAI's chatbots, which can help with writing plans, design, video production, etc. Above that are the big model teams, which are not large in size but have very strong professional capabilities. Then there is computing power, which is why NVIDIA's stock performance is so strong. NVIDIA's leading position in chips makes it difficult for other competitors to reach. Technological progress makes computing power improvements more significant.
Energy and data are two key industries that support the development of AI. Global wars and political struggles often revolve around energy, and the future development of AI also depends on energy support. Data is another key factor, and companies that have a large amount of user data have an advantage in AI development.
We are also looking for good AI solutions at Binance. For example, the Greenfield product launched by BNB Chain uses data through a privacy protection network to ensure user privacy. This is our attempt to combine blockchain and AI.
Regarding the choice of tracks, I think as a business person, it is necessary to keep an eye on and think about various emerging tracks. Regardless of the track, as long as it is helpful to society and has good products and services, it is a viable business.
My daily life is actually very simple. I exercise three times a week, usually in the morning, and then I have a day full of conference calls. My goal is to cultivate a leadership team and build strong leadership in the entire industry. In addition to meetings, I spend a lot of time researching organization and management and communicating with the HR manager. I recently added the task of writing emails to CZ, reporting work, sharing life tidbits, etc. My life is simple, from morning to night it's all about work, exercise, spending time with family, and reading. That's my day.
What are Binance's considerations for stablecoins? How will they develop in the future?
He Yi: Our logic for stablecoins is very simple. Although we cannot say we accept all, we hope this is a continuous competition. In the past, BUSD was a collaboration with a third party. For us, whether it's TUSD, FDUSD, or more stablecoins in the future, we welcome collaboration. The key is whether the qualifications and capabilities of the collaboration partner match and whether we can come to an agreement. We are very optimistic about the stablecoin track, but to operate this well, it requires the right timing, location, and people, and not just setting up a stablecoin account to accept funds.
After Binance's user base exceeded two billion, where might the new user increment come from? First, it should be stated that registered users do not equal active users, and some registered users may not have engaged in trading or deposit activities. To reach a larger scale, there needs to be more high-quality assets. If the industry is in turmoil, it is because of the lack of high-quality assets, which involves the issue of crossing the chasm. Our task and thinking are about how to cross the chasm and make blockchain as accessible as the internet or AI, allowing ordinary people to use it directly. Once the chasm is crossed, a tenfold or twentyfold increase in user base is not a problem.
I firmly believe that as long as the cryptocurrency market can introduce practical and high-quality assets, the market size can expand fivefold or even more. In each cycle, new applications and companies will emerge, and the companies that persist and create value for the world will become industry leaders. Just like the top companies after the internet bubble, such as Apple, Amazon, Facebook, Google, etc., they continue to create value and become the world's top companies. We also hope to see this kind of sustained growth and development in the blockchain field.
After Binance surpassed 200 million users, what plans and strategies does Binance have to bring in more outside forces for the industry?
He Yi: After Binance surpassed 200 million users, what plans and strategies does Binance have to bring in more outside forces for the industry?
In fact, Binance has been making such attempts all along. Whether it's from a marketing perspective, through our academy, charity projects, or even in the listing of projects, we have made some attempts. We have also received some negative feedback. For example, everyone knows that we previously signed with The Weeknd, and later we also signed with Cristiano Ronaldo. Ronaldo has 600 million followers on Instagram, and his daily likes often reach several million or even tens of millions. We hope to use the celebrity effect to make more people aware of Binance and cryptocurrencies.
In addition, we hope that when users register on Binance, they can take the time to understand cryptocurrencies, rather than blindly following investment trends. Even investing in meme coins requires an understanding of their nature and cycles to avoid impulsive actions. Our logic is that not all projects listed on Binance are necessarily of very high quality, sometimes it's due to user demand. We will first put some projects in the futures market, allowing users to choose to go long or short. If the long-term popularity of a project is uncertain, we will first put it in the futures market, and users can choose one-time or two-time leverage.
We have also made some mistakes. For example, the Hook project was mocked as the "girlfriend coin," and many people questioned whether the users of this project were fake and bought. We carefully studied their users and found that they are not typical crypto users, but rather users who obtain rewards through registration and completing tasks, such as for motorcycles, rice cookers, etc. These users are not typical crypto investors.
We recently also collaborated with some Web3 project teams for cross-game cooperation, attracting 1.3 million users, but only 56 of them became trading users because they were mainly there for airdrops. In this process, some may question why we would list these projects, but we hope to find applications and business models that can change the lives of ordinary people through these attempts.
In addition, Binance Academy and charity projects are also taking on more industry responsibility and influence. Although sometimes the investment does not always yield results, at least more people are seeing Binance and cryptocurrencies. Signing with Cristiano Ronaldo may not have brought in a large number of registered users and trading users, but at least more people are seeing Binance.
The crypto industry has a lot of negative information and biases, but we will continue to firmly push the industry forward and guide more outside users to join. Even if we endure some ridicule and failures in this process, as long as the goal is clear, we will continue to move forward.
In summary, we will continue to work hard to bring in more outside forces and promote the healthy development of the industry.
After the regulatory settlement in the United States, how will Binance's development in Europe or other regions be affected?
He Yi: After the regulatory settlement in the United States, there may be some impact on Binance's development in Europe or other regions. As you may have seen, we had a senior executive encounter trouble in Nigeria.
From a regulatory perspective, traditional finance has a history of over a hundred years, and the regulatory system has been gradually established. Therefore, when they see something new like Crypto, claiming to overturn traditional finance, they naturally view it as a flood beast. In this situation, as a leading company in the industry, we will face more pressure and challenges.
Many people believe that DeFi can solve all problems, but in fact, the development of the internet also went through a similar stage. Although information freedom is important, the internet is still under the observation and regulation of governments around the world. The blockchain industry will also face similar challenges. If it is completely decentralized, regulatory agencies, especially in the United States, will take strong measures to crack down on DeFi, and they will not go easy on the CeFi part either. This is why CZ is currently in the United States.
If we want this industry to serve 1 billion users and drive the industry forward, we must reconcile with regulatory agencies, establish consensus and trust, and find a way to survive. When the industry reaches a sufficient scale, it must demonstrate its positive impact, how it complements the existing financial system, improves efficiency, and achieves peaceful coexistence. This is the direction we are thinking and moving towards.
In this process, we will encounter some challenges, such as not being able to offer futures trading in certain regions. In addition, the compliance team will become very large, and many decisions will require the approval of the compliance and legal teams. But as long as the organization itself is strong and the strategy is correct, these phased challenges will not affect the long-term goal. Overall, we are still seeking coexistence.
Coinbase also strongly supports embracing regulation. We may be the first exchange globally to actively embrace regulation, especially doing well in the United States. In fact, all the competitors in the market, such as Coinbase, OK, Huobi, Bybit, Bitget, Bitmex, etc., have gone through many cycles and there is much for us to learn from. This industry is still very early, and it requires joint efforts to grow the pie.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
