CEO of Binance Changpeng Zhao (CZ) has made a statement in favor of centralized exchanges calling them not all that bad. This is a statement in reply to Vitalik Buterin ’s words that centralized exchanges should “burn in hell”.
Why Vitalik made strong remarks against centralised exchanges?
Vitalik has not been a big fan of the Centralized business. In his recent comments, he has targeted the centralized exchanges and was quoted saying that they should burn in hell. His anger was with respect to the control and cost the exchanges have for a project or company to sell its own tokens. Vitalik comment for centralized exchanges was very sharp, to quote him
“I definitely hope centralized exchanges go burn in hell as much as possible,” Buterin said,
“there’s no reason some projects need to pay $10 to $15 million in listing fees to let people trade their tokens on centralized exchanges.”
According to him, centralized exchanges exist because they serve as an interface between the fiat world and the cryptocurrencies. “And the fiat world only has centralized gateways,” he said. Although early days, Buterin likes crypto-to-crypto exchanges as there are already clear advantages from a user’s point of view.
For example, one doesn’t need to sign up or login. The user can send money to a wallet and define an output address. This way, exchanges only act as input/output tunnels, moving tokens from one address to another in two different currencies.
Binance CEO’s counter to Vitalik’s claim
Changpeng Zhao (CZ), the founder and CEO of Binance, said centralized exchanges are not that bad, and decentralization is not a cure-all refuting a recent comment by Ethereum founder Vitalik Buterin that those exchanges should “burn in hell”.
Got asked a few times, re: “Vitalik’s burn in hell”.
Let’s not wish others to "burn in hell". Let’s have a bigger heart, and appreciate the fact that we are part of an eco-system… pic.twitter.com/4QYGKus0Gk
— CZ (not giving crypto away) (@cz_binance) July 10, 2018
He has also mentioned that one should have a bigger heart and appreciate the fact they are part of the ecosystem and not independent projects. According to him if Fiats don’t exist the crypto industry would have been smaller, less developed and all coins combined would have far less liquidity. According to him the goal of decentralization is to increase freedom and choice.
He made it clear that he himself is in favor of blockchain and decentralized businesses but that doesn’t mean he would want others to burn in hell.
As CZ’s rightly puts, the idea of blockchain existence is to take the whole ecosystem forward and not just part of it. It should be left to the people on what side they want to be in Blockchain in its true sense.
Which side are you on – Progressing ecosystem or complete decentralization? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.