Binance CEO Rebuts Buterin’s Centralized Exchange Slur

clicks | 7 months ago | Google AI sentiment 0.10 | comments: discuss | tags: cryptocurrency ethereum

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Binance CEO Rebuts Buterin’s Centralized Exchange Slur nickchong | July 11, 2018 | 11:00 am Binance CEO Rebuts Buterin’s Centralized Exchange Slur nickchong | July 11, 2018 | 11:00 am
Last week, Vitalik called out centralized exchanges in an interview with TechCrunch, with his statements catching many off-guard, including Binance’s CEO. Binance CEO: We Are All Part Of The Same Ecosystem
Vitalik Buterin, a co-founder of the Ethereum project, recently called out centralized exchanges in an interview with TechCrunch. Vitalik, a prominent Russian-Canadian programmer, has been well-known for his work in the cryptocurrency space, becoming an advocate for decentralization.
As a result of his ties to decentralization, the Ethereum co-founder expressed his hate towards centralized exchanges, while not naming any platform in particular. He said:
“I definitely hope centralized exchanges go burn in hell as much as possible.”
This statement given by Vitalik quickly blew up on social media, and soon enough, everyone had their own opinion on what Vitalik had to say. Eventually, Changpeng Zhao, the well-known CEO of Binance , got wind of what Vitalik had to say about a centralized exchange like his.
On July 10th, he issued a lengthy Tweet giving his opinions on what the cryptocurrency personality had to say. 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…
— CZ (not giving crypto away) (@cz_binance) July 10, 2018
Firstly, CZ pointed out that the comment “burn in hell” wasn’t taken too nicely, asking for centralized exchange critics to “have a bigger heart.” The Binance boss wrote:
“I would not wish “burn in hell” on anyone or anything. That’s just not a nice thing to say, even if it was said by Vitalik.”
Zhao reasoned that all cryptocurrency community members are part of the same ecosystem, and it would be in our best interest to collaborate instead of propagating the infighting that has become a sort of calling card for the industry.
Secondly, the CEO noted that the cryptocurrency industry would be on levels of magnitudes different if centralized exchanges weren’t present. Exchanges like Coinbase and Binance have created high levels of liquidity for the industry, allowing for incoming retail investors to buy, sell and trade a variety of different cryptocurrencies. Additionally, centralized exchanges have become an integral part of the fiat on-ramp process, which became a leading factor in the most recent cryptocurrency run up. The Industry Would Be Smaller Without Centralized Exchanges
As CZ puts it, “if it was not for fiat (and centralized) exchanges, the industry would be smaller and the industry would develop slower.”
This has been widely received as true, take a look at the top exchanges on CoinMarketCap, It easily becomes apparent that decentralized exchanges have not seen the levels of adoption which centralized exchanges have experience.
Vitalik recognized this in the aforementioned interview, noting that the only reason why centralized exchanges are still viable is due to the fact that they act as a gateway, bridging the gap between fiat and cryptocurrencies. The Ethereum proponent went on to say that decentralized exchanges will only become more and more prominent as time goes on.
However, CZ rebutted by saying that nothing is truly decentralized, and things that are “decentralized” are not safer (or better) by default. The CEO pointed to the example of Ethereum Classic and Ethereum DAO situation, where the decentralized autonomous organization fell victim to a security breach, causing a fork of the original Ethereum chain.
In addition, it was pointed out that efficiency and adoption rates are an important part of the centralized/decentralized debate as well, implying that if centralized exchanges are required for mass cryptocurrency adoption, then so be it.
Despite trying to address most of Vitalik’s points, CZ didn’t mention allegations of absurdly high listing fees that many exchanges require in the rebuttal. However, in an interview with Ran Neu Ner of CNBC Africa, Zhao gave viewers of the ‘ Crypto Trader ‘ show an insight into Binance’s listing process. He said:
“We don’t negotiate and we don’t ask for a price. When a project team submits an application, they will tell us what they want to pay. And you can say zero ($), which we may accept and we have listed coins that say zero. However, there’s a sweet spot for the money you pay. If it’s too high, then we actually get worried…. But we list coins for a fairly low fee”
It was not made clear where this ‘sweet spot’ lies, but many speculate it ranges in the $3-5 million range. Binance Chain: Binance’s Upcoming Decentralized Exchange
Despite taking a seemingly harsh stance on the current state of decentralization, Binance is still planning to move forward with its own decentralized project, Binance Chain.