Dialogue with He Yi: Is Binance the scapegoat for the bleak market? Time will tell.
Written by: Xiaobai Navigation Coderworld
July 14, 2024BinanceIt’s the 7th anniversary.
Review the entirecryptocurrencyThe development history ofBinanceAs co-founder He Yi often said,“We are not starting a business, we are making history.”
无论你喜欢或者不喜欢Binance,You have to admit that Binance has shaped the history of the crypto industry to a certain extent in 7 years.
In 2017,cryptocurrencyIn the Wild West of the crypto world, Binance emerged. After just 6 months, the number of users exceeded 6 million, making it the world's number one crypto trading platform in terms of trading volume. CZ appeared on the cover of Forbes magazine, and He Yi became the only "number one lady" in the crypto industry.
In 2019, the crypto market experienced a bear market trough. Both project owners and retail investors were seriously lacking in confidence. At this time of depression, Binance launched Launchpad (IEO). The first phase of the project raised 7 million US dollars in less than 15 minutes, and the price rose more than 10 times after the opening, bringing hope of recovery to the sluggish market at that time. Subsequently, variousexchangeMany followed suit, and the crypto market gradually regained its vitality.
As of July 2024, the cumulative return on investment of all Binance Launchpad projects is still as high as 16 times, far ahead of others, and the highest ROI in history is nearly 200 times!
In 2020, that summer belonged to DeFi, and as the representative of CeFi, Binance did not miss this feast. In April 2019, Binance set a precedent again and launched the Binance Chain; in September 2020, it launched the EVM-compatible Binance Smart Chain BSC (Binance Smart Chain). To this day, BNB Chain is still one of the leading public chains with the highest daily active users.
In 2022, FTX, Three Arrows Capital and other companies have collapsed in succession, the market has entered its darkest moment, and the industry has fallen into a crisis of trust. Binance has launched a $1 billion industry recovery fund and is the first to propose that allexchangeThe introduction of Merkle Tree reserve verification has now become an industry standard rule.
In 2023, a big year for regulation, Binance agreed to pay $4.3 billion to settle charges with the U.S. Department of Justice, the Treasury Department, and the U.S. Commodity Futures Trading Commission (CFTC). New CEO Richard Teng took office, and Binance entered a new chapter of compliance.
In 2024, Bitcoin ETF was approved, and Binance continued to work hard on compliance. However, the roller coaster market and the collective depression of altcoins made everyone start to point the gun of public opinion at Binance.It is believed that Binance’s frequent listing of new coins/VC coins has drained liquidity.
On the evening of July 12, Binance co-founder He Yi expressed her frustration with this view in an interview with Chinese crypto media (Foresight News, Wu Shuo, coderworld, Odaily). She said,According to statistics, from last year to this year, the number of coins listed on Binance is only about 30, while some platforms in the market currently have at least 100 coins listed. This is equivalent to saying that it would be best if Binance did not list any coins, and only kept Bitcoin in the end..."In He Yi's opinion, the market performance is lower than expected, so everyone needs to find a target to attack at this time.Binance has become the target.
In response to the frustration of entrepreneurs in the MEME wave, He Yi shared her philosophy of life:Unity of knowledge and action, whatever you believe in, you must stick to it. Only by persisting repeatedly will the results appear.
“When BNB was launched in 2017, others also laughed at BNB, saying that it was not a public chain but was worthy of issuing coins.Most of the time it’s not because we don’t know, but because it’s harder to do.”
The following is an interview record of Xiaobai Navigation Coderworld:
Coderworld: According to the opinions of various platforms, Binance’s listing of new coins this year has been controversial. One reason is that the number of new coins listed is relatively large and the speed is relatively fast compared to before. The second reason is that most of the coins listed have strong interests related to Binance, so everyone thinks that both retail investors and project parties are working for Binance in this cycle. What do you think about this view? What is the value of Binance’s listing of coins?
He Yi:
The first part, is Binance listing coins quickly a fact or an opinion? The fact is that we can use statistics to speak for ourselves. From last year to this year, the number of coins listed on Binance is only about 30, while some platforms in the market currently have a starting number of 100 coins. This is equivalent to saying that it would be best if Binance did not list any coins, and only kept Bitcoin in the end, and shut down Binance. Does this represent the interests of Binance or others?exchangeThe deal? I'm not so sure. Facts and opinions, that's something I'm trying to get my 5-year-old son to understand.
This world is still easily affected by emotions. Many times, people are more swept up by the emotions brought about by the market downturn and find a target., but is this true?
When we say that most of the listed coins have something to do with Binance's interests, this involves two issues. If Binance only lists projects that are related to its own interests, most of the coins on Binance may not be listed on Binance. Many projects on Binance either have no capital invested, or only 0.1 was invested. A few years ago, some of our investment managers invested just because they were told to invest 0.1 at a discount.
Is it a fact or an opinion that most of the listed coins have a vested interest in Binance? This also requires effective argumentation. In which projects does Binance account for what percentage of the total to be considered as having a vested interest in Binance?
When we launch some projects now, we will ask whether you are willing to do Megadrop or Launch on Binance.poolIf the project owner is willing, there is no need to engage in fraud. Many fraud studio accounts are still fake. Binance provides real users. This airdrop can be directly given to Binance online users. At least these users are real and have verified KYC and face recognition.Token, they are indeed retail investors, Binance really did not participate.If Binance wants to pay the listing fee, it can just ask directly. Do you think Binance needs to go through this detour with the project party? No, it doesn’t matter who you look down on.
Essentially speaking,People are not angry because they think that retail investors or project owners are working for Binance during this cycle. They are angry because the market performance is lower than their expectations and the return on investment is lower than their expectations, so they need to find a target to attack at this time.Everyone thinks that Jack Ma and He Yi should be pushed to be hung on the street lamp. This is what is happening now.
I first tried to explain what happened, but I found that this explanation was ineffective when the public's emotions overwhelmed everything. Instead, I shut up and did what I was doing at the moment.Time will prove everything. A journey of a thousand miles tests a person's ability. Time reveals a person's true character.
Second, you should understand that Binance is not the only business. In essence, Binance provides trading products or non-trading products with different risk scales to users. For most ordinary people, if I feel satisfied with the annualized 10%/20%, Earn is still a good product. Even if I use the stable currency USDC for financial management, I think it is not bad. But if your expectation is that I want a big return of 100 times or 1,000 times, this may be a problem.
As the industry matures, the information gap will become smaller and smaller, competition will become more and more intense, and the return on investment will become lower. People tend to hope that no matter what coin is listed on Binance, as long as you buy it, it will rise. This expectation may be quite different.You can’t say that it’s normal for the price of coins to fall if I buy them on other trading platforms, but that the price of coins must rise if I buy them on Binance.
I think we still need to understand that the fundamental function of the trading platform is to provide everyone with relatively popular and hot projects on the market. In this process, we hope to screen out those project parties that run away after three days of work, and screen out those project parties that have the opportunity to succeed or have the opportunity to survive longer.However, this does not mean that the coins on Binance will only rise and not fall, or that the coins on Binance will definitely rise.
Coderworld: Recently, I have observed that people’s confidence in the industry has declined. On the one hand, the market is not good, and on the other hand, there is a kind of disillusionment, or the technical narrative is temporarily broken. People think that the so-called technology and products are just disguises. The essence of this industry may still be a game of liquidity, emotions and chips. Entrepreneurs will think that it is better to issue MEME than to make a product; retail investors will also think that it is better to speculate on MEME than on technology. In many cases, half of the top ten transactions on Binance are MEME.TokenIn your opinion, will this become a norm in the future crypto industry?ExternalitiesIs this an encryption application?
He Yi:
As you said, if half of the top ten in terms of trading volume are MEME, what will happen if Binance does not list MEME? Trading volume and users will go to other platforms, so many times we have no choice. If you don’t list MEME coins, there are many trading platforms, and then there is DeFi. So it’s not that the entire industry works for Binance, but many times we can only make compromises and try to maximize the value.
This is not a unique phenomenon in the cycle. In 2014, everyone thought that everything except Bitcoin was garbage. In 2017, everyone also thought that everything was garbage and we were all gambling. Many people understood trading as gambling. Whether it is the traditional financial market or the Crypto market, it is indeed very affected by emotions. This is a fact.
But it does not mean that you should make a good product or build a good business model. It is not true. When every market boom or every emotional fluctuation comes, it is indeed a shock for ordinary investors and entrepreneurs.
I have recently been emphasizing one thing to my team members.Unity of knowledge and action, whatever you believe in, you must stick to it. Only by persisting repeatedly will the results appear.
We all know from childhood that as long as you study hard, your test scores will probably not be bad. Many people know this, but they can’t do it. We all know that if you want to lose weight and have a very good body line, you need to control your mouth and move your legs, but you can’t do it. There are temptations every day telling you to enjoy the present moment, eat well and drink well, and gain weight first and then lose weight.
You can understand that this is also true for both the entrepreneurial market and the investment market. When you want to stick to your ideals and insist on innovation, others will tell you that it’s useless and you might as well post a MEME. It’s better to create a MEME than to hype up any other technology.
Looking back at the time when BNB was launched in 2017, others were also laughing at BNB, saying that it was funny that a trading platform would issue coins, and that it was not a public chain that was worthy of issuing coins.Most of the time it’s not because we don’t know, but because it’s harder to do.This industry is the same. Everyone knows that there is still a need for product innovation and technological innovation. We need to be able to create effective and good products that have real users and applications and can impact the world, but this is more difficult.
Coderworld: Many veterans in the industry have begun to pursue their favorite careers outside the crypto industry. CZ is building an education career, and the founder of Coinbase has also founded a biological company that studies immortality (delaying aging). If you have the spare time to do what you like, what would you choose to do outside of the crypto industry?
He Yi:
I haven't thought about this matter outside of the encryption industry.I may not be interested anymore.Xiaobai NavigationDoing business.
I think this may be my personal character trait. I used to study education and worked as a teacher. I am a bit of a know-it-all. Personally, I still hope to help others succeed. Only by helping more people succeed can I succeed myself.
It is hard for me to imagine anything else outside of the crypto industry that is worth my time and energy. Maybe it is to help more people succeed, or to return to investing and how to provide everyone with an effective mindset.
I understand that CZ's decision to engage in education was a passive one. To be more precise, he had nothing to do and was looking for something to do. The choice of the founder of Coinbase is also understandable.This WorldAIThe pace of development is so fast.AIIt is indeed a being more advanced than humans.Agent.
Humans are actually a relatively simple code design. The logical input and output are relatively predictable. However, humans often encounter bugs because the gap between knowing and doing is quite large. Most people know but cannot do it.
In fact, if you look at the entire history of mankind, poor people all wantmake money, rich people are all pursuing immortality. It is roughly possible to judge what a person will do after he becomes rich. Under this structure, I think it may not only be the founder of Coinbase, but also some older OGs in our industry.make moneyAfter the first child is born, they will have more children so that their DNA can be passed on. The second child can pursue living longer and pursuing immortality. This is normal logic. It is foreseeable that they will enjoy life moderately and pursue quality of life.
But it does not mean that some OGs leaving the industry means that the industry is no longer trustworthy, nor does it mean that some financially free people are enjoying life and others have no opportunities. It is precisely because of those who have left that there are more opportunities.
小白导航 coderworld ：以前，大家经常把币安比作加密世界的腾讯，腾讯在3Q大战之后将自己的使命变更为成为一家最受人尊敬的企业。未来多年之后，如果谈到cryptocurrency的历史，一定离不开币安，您希望到时候大家会如何评价币安？
He Yi:
I have said this many times, since 2017.We are not starting a business, we are making history.I have believed in this since the first day I joined.BlockchainBringing future changes and possibilities to the world. My logic is that because I believe in it, I will go all in on this matter and devote myself completely to it.
Can you understand why I resolutely left home to do this during the September 4th Incident? Because I saw in the tide of the timesBlockchainTechnology may bring changes to the world, so I am willing to invest myself in this matter, treat it as my own mission, and devote myself to it. I also believe that there will be more outstanding entrepreneurs and more excellent talents to join us in doing this.A single spark can start a prairie fire. You can see it because you believe in it. If you don’t believe in it, there is no way you can accomplish it.
Other questions and answers
Wu said: Many project parties hope to obtain investment from Binance. What are the most important criteria for Binance when investing?
He Yi:
I can align my understanding of investment with everyone.
BlockchainIn order for technology to be popularized and used by more ordinary people, we need to cross the chasm, and behind this, there must be real innovation drive. Labs has invested in about 2,000 projects, if not 2,000, at least 1,000. But to be honest, I haven’t talked to most of the projects, and I haven’t communicated with them.
Basically, Labs' investment depends on several frameworks. The first is whether the founder is a long-termist and believes in the industry. If he goes all-in on the industry and runs away, he is no different from a gambler. Even if he succeeds, he will sell the coins and run away.
The second very important point is his skills and what he has done. For example, some people are KOLs, and there are 1,500 people in the Telegram group. If I shout and the price of a single coin can go up, will you invest? He may help promote a project, but that doesn’t mean he is a good investment target.
The third is the mindset, whether his entire growth can be continuously iterated. Many people are very hardworking, even if they start from a low point, but they can keep iterating. You can probably make a judgment during the conversation with him. Does he have a vision for the industry, what is his understanding of the world? What is his or his team's capability model? If it is basically acceptable and the fundamentals are okay, we are still willing to invest some money to cultivate it. As for whether it can grow, whether it can pursue the so-called 100% success, this thing does not exist in essence. You see that traditional VC invests in ten projects, nine of them fail, and only one succeeds. This is very common.
Labs is investing in this project because we hope that there will be more innovators in this industry who can come forward and build confidence in this long night. Whether it is a long night of emotions or a long night before a big leap in technology, if you don’t support others, you will eventually become a lone walker. If you are the only one on this road, it cannot be called an industry.
Odaily: As a co-founder of Binance, you have achieved financial freedom a long time ago, and you have not considered retiring and handing over Binance to professional managers? Can you introduce some of your plans for the future, such as how to find a balance between work and family?
He Yi:
First of all, I am a girl, and people will not interview a boy and ask him how to balance family and work. Whether it is a male entrepreneur or a female entrepreneur, the fundamental problem is time management.
The first is that I think it's better to spend more time on more important things.
The second point is the concept of time granularity. I usually don’t spend so much time communicating with everyone face to face. I usually hope to control the meeting within 30 minutes. If it is a more effective meeting, I hope to control it within 15 minutes. So in fact, it is essentially a matter of time granularity management. These two points are more meaningful to me.
I personally have a strong sense of responsibility. I hope to build Binance into a long-lasting system. In each module, each professional manager can cultivate enough successors who are better than me, have better backgrounds than me, and are stronger than me in their professions. How to organize these people together and maximize their value is still a thirst for talent. The team has enough strong people, and each of them can manage better than me. At this time, I can just ask.
I have said before that I particularly admire Duan Yongping. After retiring from BBK, he still owns VIVO, OPPO, and Xiaotiancai watches. This is a successful retirement. It doesn't matter whether he retires or not. He has a good structure. If he has a good team of talents, it doesn't matter whether he has the concept of retirement or not.
Foresight NEWS: Many well-known leading companies in history are fleeting, such as Nokia, Netscape, and Yahoo; some companies are evergreen, such as Apple and JPMorgan Chase. In an industry with very fast innovation, even giants often only need a short time to go from prosperity to decline. What major crises do you think Binance is facing in the future, and how do you deal with them?
He Yi:
I am a person with a strong sense of crisis. From the perspective of the entire industry, the biggest crisis is of course the regulatory crisis, and this is not just for Binance. Although we have just passed this level, regulation is always an important challenge.
The second crisis is the crisis of industry competition and innovation. At this stage, the competition between exchanges is parallel, and the core skills of each exchange are not much different. We are also constantly learning from others and continuously improving. The bigger crisis actually comes from unknown uncertainty and innovation. Therefore, we encourage continuous attempts at new things from the perspective of investment and internal employees. If any colleague wants to conduct innovative business or has entrepreneurial ideas, we are very supportive.
In essence, all threats do not come purely from known competitors, but from environmental uncertainty and new innovations. If new innovations emerge and you are unaware of them, that is the biggest crisis.Just like the mobile phone giants did not realize what the emergence of smartphone screens meant to them.
The entire industry has developed to this day, and it is difficult to exist as a niche startup like in the past. Now we need to establish effective communication with regulators and policymakers. I personally spend more time focusing on how to transform a startup supported by the charm and ability of the founder into a long-lasting company. This requires the improvement of organizational capabilities. If the organizational capabilities are strong enough, we can continuously cultivate good seed players.
For more interview content, please check other reports
Foresight NEWS:He Yi: Ten years of cryptography and my industry values
The article comes from the Internet:Dialogue with He Yi: Is Binance the scapegoat for the bleak market? Time will tell.
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