The original title: "CZ Binance Square AMA Q&A Transcript: Entrepreneurship, Direction, Bear Market Investment, and Opportunities for Ordinary People"
Original source: PANews
On April 15th, it has been a week since the release of Binance founder CZ's new book "Binance Life." This week, many participants from different positions in the cryptocurrency ecosystem have read the book. What kind of questions will they ask? How will CZ answer these questions?
The following is the full整理 of the AMA on the evening of April 15th:
1. How to build confidence from 0 and persist in entrepreneurship?
You started from scratch, with no resources and no complete plan. How did you build confidence, persist, and believe that the path you are taking is correct?
I got involved in entrepreneurship early on, participating as a developer in some small entrepreneurial projects, which gave me a preliminary understanding of the entrepreneurial environment. Later, I worked in companies of different sizes, including small companies and large enterprises, and I gradually realized that my personality was not suited for staying in highly structured large companies for long.
In contrast, I prefer the higher degree of freedom and faster change in small teams and entrepreneurial environments. Therefore, I have always developed in such environments, attempting entrepreneurship several times.
Throughout this process, I have experienced many failures. So my advice to entrepreneurs is: always control risks. When you fail, do not burden yourself with heavy debts; financing should primarily be in the form of investment, not loans, which creates pressure to repay.
My growth has been a long-term accumulation process: first improving my technical capabilities, then gradually participating in business and sales, leading to team formation.
The real turning point was the emergence of ICOs. I realized at the time that this was an opportunity to raise funds in this way, so I started forming a team and seized the opportunity in 2017.
The entire process did not start with a clear plan but was a continual process of trying, adjusting, and gradually forming a path.
In the end, there is no so-called success formula; everyone’s path is different.
The key is to find a direction that suits you and create value for others.
2. How to judge whether the direction is correct? What to do if the direction is wrong?
Many people work very hard but cannot break through, which may be due to the direction being wrong. How do you judge whether the direction is correct? What should one do if the direction is wrong?
In my experience during life's low periods, it is important to keep moving forward. Often, the situation improves over time, either due to environmental changes or your own adaptation.
But the more critical issue is direction. If you continue doing something without results, then you must adjust your direction instead of repeating the same actions.
Many people fall into trouble because their behavioral patterns are fundamentally wrong, such as consistently spending more than they earn or maintaining habits that are not conducive to improving their situation.
In such a case, proactive change is necessary:
· First, control spending to ensure that a portion of income can be saved.
· Second, continuously improve yourself by learning something new every day.
Even those engaged in manual labor can carve out time each day for self-improvement. Long-term persistence will lead to change.
Many people choose to use their time after work on entertainment or socializing, which only provides short-term satisfaction and does not lead to long-term improvement.
If a person does not show progress over a long period, they can easily become stagnant.
Continuous small improvements not only enhance the current situation but also provide positive feedback psychologically. Therefore, it is essential to maintain progress and an optimistic mindset.
3. Do ordinary people still have opportunities in the current crypto environment?
Now that institutions are entering and the industry is maturing, do ordinary people still have opportunities to make a leap in the crypto field? What advantages do they still have?
I believe this industry is still in a very early stage.
In my view, over the past few decades, there have been three major technological waves: the internet, blockchain, and AI, all of which will have a profound impact on society.
Although the crypto industry is much more mature than it was ten years ago, overall, it is still just in the early stages. Current blockchain applications in the financial system are still very limited; core areas such as lending, payments, foreign exchange, and commodity trading have not yet been fully integrated onto the blockchain.
Data shows that around 7% to 10% of the population has been exposed to crypto, but the proportion of crypto in the assets held by these individuals is still very low, with a total asset proportion of less than 1%.
This indicates that there is still significant growth potential in the entire market.
In the future, blockchain has the potential to become part of the global financial infrastructure, even to the point where "traditional finance" and "crypto finance" may no longer be distinguished.
Currently, AI is attracting vast amounts of funding and attention, but this has allowed the crypto industry to retain more long-term builders. This environment is conducive to long-term development.
At the same time, AI will also integrate with blockchain in the future, such as transactions between AI agents, which are more suitable for completion via blockchain.
Therefore, this industry has not yet reached maturity and still possesses a host of undeveloped opportunities.
While predicting the price trends of specific assets is impossible, I maintain a very optimistic outlook on blockchain from the perspective of industry development.
4. How to judge whether the direction is correct?
In life or the entrepreneurial process, how do you judge whether the direction you have chosen is correct?
I have mentioned a viewpoint in my book: When you are in a low point in life, the most important thing is to keep moving forward.
This realization was formed early on, even before I entered the crypto industry. In my experience, whenever I encountered highly stressful situations or faced setbacks, if you could persist for a few days, things often would get better. Either the environment truly changes or you gradually adapt.
Many times, the situation is not as dire as it appears in the moment.
I remember shortly after I graduated, there was a time when I was between two jobs. I took on a short-term consulting project that was renewed monthly. At the end of each month, I was uncertain whether the client would renew, and this uncertainty brought great pressure.
If the contract wasn't renewed back then, my financial situation would have been directly impacted. At that time, I had just graduated, and this pressure was very real.
After a few days, the client indeed did renew, which made me realize that much of the pressure is actually short-term and may not be sustained.
Similar situations have occurred many times in my life, including later when facing greater pressures, such as regulatory or legal issues; the same logic applies: short-term adversity can seem very difficult, but over time, complications will ease.
But back to the core question: If you keep moving forward, how do you know whether the direction is right?
My view is that, in most cases, you can judge by results. If what you are doing is not producing any positive feedback or has not improved after a long time, this indicates there may be issues with the direction.
In this case, you cannot just persist but need to adjust your direction.
5. What to do if the direction is wrong?
If the direction is wrong, the most important thing is not to keep insisting but to change.
Some people find it difficult to move forward because they keep repeating the same ineffective behaviors. In such cases, if they do not change, they cannot achieve different results.
I have observed a very common issue: many people are in a "spending greater than income" situation for an extended period. They have developed fixed spending habits that require them to maintain a certain living standard, but their income cannot support it.
This way, they remain under pressure and can never escape their predicament.
In such a situation, the first step must be to control spending.
For example, you can reduce some unnecessary expenses:
· Go out less often, eat out less, and cut down on entertainment expenses.
These adjustments do not significantly affect basic living but can help restore some financial breathing room.
The second key point is: continuous learning and self-improvement.
No matter what work you are doing now, even if it is manual labor, like construction workers, restaurant servers, or dishwashers, which I have done, you can still find some time each day for learning.
This could be reading or learning a new skill.
If you make a little progress every day while controlling your expenses, you can gradually regain control over your life.
This process may not be quick; it might take years or even longer, but it is an effective path.
The reason many people cannot improve is that after work, they simply rest or indulge in entertainment, like watching TV or scrolling through social media. These activities provide short-term relaxation but do not lead to long-term improvement.
If there is no progress for a long time, a person will stagnate.
However, once someone starts to make continuous progress, they gradually experience positive feedback and find it easier to stay motivated.
6. What are your feelings after completing this book?
After finishing this book, my biggest feeling is "relief."
This was a very long project, not just in writing but also included many other tasks, like repeated revisions, communicating with editors, deciding on publishing methods, designing the cover, applying for ISBN, and so on.
The details involved in the whole process are numerous, and each phase requires significant time and energy.
In terms of writing, I have also learned some experiences. I read some other authors' books on how to write autobiographies, one important point is that the first draft is always going to be terrible.
You need to get all your thoughts down first and then revise continuously. I revised it about ten to twenty times, with each round of revisions taking two to three weeks.
Writing a book is essentially a process of repeated polishing, not something that is completed in one go.
Another reality is that writing an autobiography will almost certainly offend people.
Because if you want to tell your experience truthfully, you have to touch on issues that often involve specific individuals. As long as you express true feelings, it inevitably makes some people uncomfortable.
So writing an autobiography is not just a writing issue but also a psychological challenge.
Moreover, after publication, you will also be scrutinized and criticized by more people. This is also part of the challenge of writing.
But from another perspective, this is valuable. Compared to scattered expressions on social media, a book can present your experiences and perspectives more comprehensively, allowing others to understand you in a more systematic way.
7. What do you hope readers will gain from the book?
The purpose of writing this book is not to create a teaching book or a methodology for success.
I want to present my own experiences fully, allowing others to understand these matters from my perspective.
In the crypto industry, including Binance itself, there has been a lot of negative narratives and misunderstandings. Many people have a one-sided understanding of this industry, the company, and even myself.
These understandings often come from external messages rather than the perspective of the person involved.
Therefore, I hope this book allows everyone to see:
· What we experienced at the time and how we made decisions; what I was thinking when facing problems.
· I wrote about many issues and difficulties in the book, rather than just discussing the successful parts. Because if only the good things are mentioned, it would not be authentic.
Additionally, I did not deliberately exaggerate the stories. In fact, I cut out some even more "dramatic" content.
Some things weren't included because:
Time is still too close and developing.
Or they involve legal issues or regulatory matters that are still ongoing.
If I write a second edition in the future, I might add more content.
So overall, the core goal of this book is to help readers understand this experience more authentically, rather than to provide a standard answer.
8. How to avoid missing out on excellent projects?
Many investors missed Binance back then. Now that you are investing yourself, how do you avoid making the same mistakes and missing out on truly excellent projects?
To be honest, this situation is unavoidable.
In the early stages of a project, the information available to you is very limited. Usually, there is only an idea and a founder, and the project itself has not yet really taken off.
In this case, you can barely judge the project; you almost exclusively assess the founder.
So even for me, if I were looking at Binance as an investor back then, I might not have invested.
Similarly, now when I invest, I will also miss some projects that might succeed in the future. This is an inherent aspect of investing and cannot be entirely avoided.
Investment is not about seizing every opportunity, but about achieving a positive overall return.
That means:
You will miss many good projects.
You will also invest wrongly in many projects.
The key is that a few successful projects can cover the losses from failures.
Therefore, I won't try to "not miss any opportunity," but rather accept this reality.
9. What do you value most when investing?
In early-stage investments, the core is still the founder.
I am more inclined to invest in those who have a long-term mission rather than those who only focus on short-term gains.
A clear criterion is: those who continue to work on their projects during a bear market.
If the market is not good and the crypto industry is in a downturn, but this person is still pursuing their project, they are more likely to be long-term oriented.
In contrast, during a bull market, many overvalued projects emerge, which can seem very attractive in the short term, but it is difficult to determine which will truly exist long-term.
So I personally prefer to invest more actively during a bear market.
In addition, I will look at some fundamental factors, such as:
· Whether there is a product or prototype already.
· Whether there is a certain level of execution capability.
· Whether they can move quickly.
With AI now available, making a prototype is very fast, so I prefer to see actual execution rather than staying at the idea stage.
Another important factor is valuation.
If a project has no product or users but demands a very high valuation, I usually won't accept that.
Of course, investment judgment is a team effort; our team conducts more in-depth due diligence, whereas I mostly judge the founder based on intuition and experience.
10. How to determine whether a crypto project has long-term value?
In the current market, there are many narratives and hot projects. How do you determine which crypto projects or narratives possess long-term value and which are merely short-term hype?
There is no absolute method for this question, but it can be judged by several signals.
First, a very important indicator is the development activity of the project, such as submissions on GitHub. If a project has ongoing code updates and developers continuously participating, it indicates that the project is genuinely progressing.
This can be understood as whether a project is "alive." As long as development activity continues, it shows that the project is still evolving.
Many projects engage in extensive marketing early on, release a version, and gain attention for a short period. However, if the subsequent development activity rapidly declines, the long-term value of that project becomes questionable.
Sometimes you will find that a decline in development activity can precede a price drop.
The second important factor is whether the project has gone through multiple market cycles.
If a project has consistently existed through multiple bull and bear cycles and has maintained development during a bear market, it is more likely to be a long-term project.
In contrast, some projects are very popular in one market cycle but virtually disappear in the next, often lacking sustainability.
For example, some projects that were once very popular are hardly mentioned after one cycle, and even if they are still developing, their activity and influence have significantly decreased.
The third factor is the history of the founder.
If a founder changes projects every one to two years, you can deduce that their current project's lifecycle is not going to be very long.
While there are exceptions, overall, a founder's long-term commitment is an important signal.
In summary, I place greater importance on:
· Development activity
· Whether it crosses cycles
· Founder history
In contrast, I do not overly rely on price or market hype for judgments.
11. What are the true circumstances behind Binance's success?
What the outside world sees is mostly the growth and success of Binance. Are there any unknown factors that are actually critical to Binance's development?
I think the most underestimated aspect is the work intensity of the team, especially in the early stages.
The crypto trading platform operates 24/7 without any real "off hours." The system must be available at all times, and team members need to be on standby.
In the early days, the team often stayed long hours in the office, almost in a state of continuous work.
Even when I am not in front of the computer, I need to handle issues through my phone at any moment.
This working style is very demanding on both body and energy, but it is difficult for the outside world to truly understand this intensity.
Many people will say "work hard," but it’s hard to appreciate the long-term, sustained, high-intensity commitment.
As the team size grows, the situation gradually improves, the organizational structure becomes more stable, and the work intensity decreases. But in the initial stages, that high intensity is inevitable.
12. What advice do you have for confused young people?
Many young people now start from a normal point, have weaker self-control, and face more intense competition, feeling lost about the future. What advice would you give them?
I believe that there are actually more opportunities now than in the past, not fewer.
The biggest advantage of young people is their strong learning ability; their brains adapt more easily to new knowledge. If they can continue to learn and make progress every day, their growth will be rapid.
In contrast, if a lot of time is spent on entertainment, such as gaming, social media, or short-term pleasures, these behaviors do not yield long-term improvement.
This does not mean you should not enjoy entertainment at all; it just means you need to control the proportion, allocating more time to learning and self-improvement.
Additionally, I believe everyone should at least have one core skill, such as:
· Technology, marketing, finance
From this foundation, gradually expand other abilities.
From a broader perspective, technological development is accelerating.
In the past, it took a long time for a company to grow from zero to a $10 billion scale, but that process is continually shortening.
Technologies like the internet, cloud computing, AI, and blockchain have significantly lowered the barriers to entrepreneurship, and globalization allows products to reach users quickly.
Although competition is indeed fiercer, competition itself is part of learning and can help you understand what is effective.
Many people feel that the current environment is more challenging, but similar viewpoints have appeared in every era. In fact, the overall living conditions of humanity are continuously improving.
Therefore, I do not agree with the view that "opportunities are diminishing." The opportunities now are actually more plentiful; one just needs to continue learning and adapting.
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