Recently, in order to celebrate the registration of over 200 million users, Binance held an AMA to share its joy with everyone. During the AMA, Binance co-founder He Yi answered some questions of concern. This article will introduce He Yi’s replies in the AMA.
Index:
1. Has Binance made any recent progress in user security that can be shared?
2. How does Binance view high FDV and low circulation projects? Will it intervene in opening prices and token distribution?
3. How do you maintain high enthusiasm and abundant energy?
4. How do you select Launchpool and MegaDrop projects?
5. Does Binance have any standards for delisting “zombie coins”? How are they managed and removed?
6. How does Binance view its market value compared to Coinbase? Where is the growth potential of BNB?
7. What tracks do you pay attention to? How do you view AI? How do you spend your day?
8. What considerations does Binance have for stablecoins? How will they develop in the future?
9. After surpassing 200 million users, what plans and strategies does Binance have to bring more external forces to the industry?
10. After the settlement in the United States, what impact does Binance’s development in Europe or other regions have?
Recently, after Binance registered over 200 million users, a special AMA was held. Binance co-founder He Yi answered some questions of concern, including recent incidents of wash trading, contradictions in listing large projects, and standards for delisting “zombie coins”…
In addition, He Yi mentioned that she sends emails to CZ every day and also needs to write notes on what she reads. Her daily life mainly consists of exercising, making phone calls (conference calls), and putting her child to sleep, which is quite boring.
He Yi also mentioned the concept of “girlfriend coins,” indicating that Binance is trying to bring some normal business models, but this process may also face ridicule and failure.
Listen to the complete original text.
Question 1: Has Binance made any recent progress in user security that can be shared?
He Yi: First of all, I want to say that there is no absolute security when it comes to security. We must remain vigilant at all times. This applies not only to exchanges but also to our own asset security management, whether it’s using hardware wallets or custodial 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, we have raised risk control standards and levels regarding users’ assets being stolen due to clicking on third-party plugins.
We have implemented double risk control for wash trading. First, when there is significant price volatility, big data captures information and generates alerts, followed by manual confirmation. When we captured price fluctuation information, there were multiple participating trading pairs and multiple profit-taking parties, so there was no problem with risk control judgment.
Regarding losses caused by users clicking on plugins, we understand the expectations users have of us when they engage in risky operations, hoping that Binance can provide a safety net for them. We have raised higher requirements for the security and risk control teams, continuously iterating our security measures.
For users whose assets were stolen due to shared accounts, we can identify specific situations through comprehensive user behavior logs. We advise everyone not to click on or share suspicious links, especially videos and live streams. If you must 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 and different voices in the community, such as questioning whether trading platforms engage in self-theft. 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 recent frequent security incidents.
Question 2: How does Binance view high FDV and low circulation projects? Will it intervene in opening prices and token distribution?
He Yi: First, I want to provide a framework, which is my personal observations and understanding, and does not represent official logic or absolute standards. The blockchain industry is currently entering a special stage, similar to the process of technology transitioning from a niche market to a mass market. For example, early technologies like VR and 3D printing were popular but failed to be widely used because they couldn’t 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, we may be constructing a more decentralized and efficient micro-financial system. In this system, there are mature business models for transactions, assets, and anti-inflation scenarios. However, the bigger challenge lies in how to truly help the blockchain industry move towards mass adoption. Currently, there are hardly any successful use cases in practical scenarios such as games and social media.
I hope to see more projects on the blockchain that have real business models, rather than just staying at the conceptual level. The anti-VC trend and the popularity of memecoins reflect the problem of a lack of quality assets in the market. Many VCs invest in projects with high valuations, but these projects do not have good business models. Airdrops are just data, and trading platforms list tokens under pressure from user demand, but in the end, no one is truly satisfied, and everyone suffers.
Further reading: Research: Four Major Reasons Why Crypto Investors Are Trapped in “Non-Trading Bull Market”
We hope that every project has continuous growth and a good business model. However, in practical operation, exchanges cannot control project parties and liquidity providers. We can only provide guidance, such as hoping that project parties can airdrop more tokens to users, but we cannot intervene in price determination and execution. When recruiting projects, we hope to find teams with low valuations and good business models while also recruiting liquidity providers. However, excessive requirements may result in liquidity providers shifting liquidity elsewhere.
The issue of high FDV causes pain for users and investors, except for a few project parties who profit. This industry is a new market, and the rules for token issuance can be customized. Investors and users need to spend more time doing research and voting with their feet. We continuously iterate standards and requirements for project parties and liquidity providers, but this process is a battle of wits.
We hope to see more friends who are willing to solidly build projects in the market, rather than just creating empty projects. Real big success needs to withstand human challenges. I hope this wave of bubble can bring forth more excellent projects and assets.
In the future, in terms of investment incubation and funding, we hope blockchain assets can be used by more entrepreneurs, rather than locking users in the scenarios of airdrops and trading platforms. The entire industry needs to cross the chasm.
Question 3: How do you maintain high enthusiasm and abundant energy?
He Yi: From my personal experience, I come from a poor background and have experienced the highs and lows of the world. When you see the ups and downs of this world, you start to 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 an opportunity to truly change the world, why not give it a try? Leave something transformative like Elon Musk or Amazon. In reality, a person’s lifetime spending is limited, and I’m not someone who enjoys luxury goods. My greater passion lies in how to rebuild myself, break through my own limitations, and see my own growth.
I focus on self-improvement, such as last night when I sent a message saying I slept for 6 hours and then exercised. I did indeed exercise and was tortured by the coach. The requirements for myself can be divided into several modules. First is health. Fitness is not only about physique but also about health. Second is the iteration of self-awareness. I have recommended a book called “Mindset” on Twitter, which can drive self-iteration. My advantage is that I can quickly internalize what I read and link it to my existing knowledge. Third is what I leave in this world. If I can change the world, I want to give it a try. That’s why I have been consistent and persistent 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 requires not only personal capabilities but also the ability to build a strong and healthy organization. If every executive at Binance can replicate the idea of me, they may be more professional than me in terms of skills. For example, our VIP user managers are more knowledgeable about finance, and our technical team is more knowledgeable about technology. My goal is to build a powerful and healthy organization that can sustainably grow.
In this regard, my role model is Duan Yongping, who is very low-key but successful in the history of entrepreneurship in China. He established Little Swan and Bu Bu Gao, which later split into Vivo, OPPO, and Xiaotiancai smartwatches. He not only succeeded in entrepreneurship but also achieved tremendous success in investments, such as investing in NetEase and Pinduoduo. Duan Yongping’s success proves that success can be replicated. I hope my success can also be replicated by more people, cultivate more high-potential talents for Binance, and bring good thinking, ideas, and corporate culture to Binance.
This is what I hope to do and what I am striving to do now. I also welcome more talented people who are interested in Binance to join us.
Question 4: How do you select Launchpool and MegaDrop projects?
He Yi: We don’t select projects based on Launchpool or MegaDrop. We first select the projects and then decide whether they are suitable for Launchpool or MegaDrop. Initially, we had Launchpad, but due to regulatory issues in many countries and regions regarding token sales, we switched to airdrops. Launchpool was introduced for airdrops, and we found that many project parties wanted to get real users, and Binance’s holding users are relatively more authentic.
Binance’s Web3 wallet has KYC, which can prove that users are real. For example, the recent ZK project was criticized because they airdropped tokens to many fake users. If we initially obtained real users through Binance’s Web3 wallet, the situation would be much simpler. Therefore, Launchpad, Launchpool, and MegaDrop are all solutions to help project parties find real users and provide benefits to Binance users.
Sometimes we choose to list projects because project parties are willing to provide more airdrop allocations, but this decision may not always be correct. Therefore, we constantly reflect and listen to user feedback. For example, projects with high FDV have low circulation after listing on other platforms, leading to short-term price increases and subsequent price declines. 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 projects with good quality, teams with long-term development aspirations or potential for success, and then decide whether to put them in Launchpool or MegaDrop. If the project party provides a lower allocation, it will be put in Launchpool; if they provide a higher allocation, it will be put in MegaDrop. Regardless of the name, the key is to help project parties obtain real users and provide benefits to Binance users.
We will adjust the project selection criteria based on market feedback to ensure a healthy and long-term development of the market.
Question 5: Does Binance have any standards for delisting “zombie coins”? How are they managed and removed?
He Yi: We conduct regular audits of tokens that have been listed. The audit is not limited to social media activity but also includes continuous development of the project, liquidity, and whether there are major negative news. In addition, we also evaluate based on regulatory requirements in various countries and regions. If we find tokens with higher risks, we will label them as under surveillance and spend more time observing.
Recently, our frequency of delisting has decreased, mainly because some project parties 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. We aim to ensure the health and long-term development of the market.
Note: This translation is for reference purposes only.Feeding and Delisting
When it comes to delisting tokens, we conduct detailed analysis to ensure accurate decision-making, rather than simply delisting based on poor project performance.
Delisting can harm both project teams and token holders, so we strive to be objective and strictly follow listing and delisting standards. Do not assume that all projects listed on Binance are viable, as these projects can be delisted at any time. We strongly oppose “shell” projects and will immediately close any project found engaging in such behavior.
How do you view the comparison between BNB and Coinbase’s market value? What 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. These two are not in the same race. Coinbase stock cannot be used on the Binance platform like BNB. BNB not only has applications within Binance and a continuous burn mechanism, but also has the backing of BNBChain.
BNB has a wide range of uses on the Binance platform and is known as the “golden shovel” used for fee deductions. Although BNB Chain’s momentum 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, BNBChain has more real Web3 users and builders.
I believe that an important direction for the future of BNBChain is to bring blockchain technology into the lives of ordinary people, and help 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 collaboration with Circle, but Binance is taking a different road in the blockchain race.
During the process of listing many projects, Binance has empowered BNB through continuous rewards and airdrops. Short-term price fluctuations do not represent much; we are more concerned about the team’s long-term efforts and goals. The co-building of BNB Chain and the entire community requires the joint efforts of users, community, entrepreneurs, and developers.
Which tracks do you focus on and how do you view AI? How do you spend your day?
He Yi: Let me answer the question about AI first. In fact, I also talked about my understanding of AI in the previous AMA. I believe that blockchain changes labor relations and the distribution of benefits, while AI is a huge transformation in productivity. For example, many trading platforms and products operate in multilingual environments. If AI can be effectively utilized, it can save a lot of translation costs and improve efficiency. This is a concrete example of productivity improvement. In the future, the productivity improvement of AI will be reflected in more 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 assist in writing business plans, designing, and creating videos, among other tasks. Above that are the large model teams, which may not be large in size but possess strong professional capabilities. The next step 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 advancements make computing power improvements more significant.
Energy and data are the two key industries that support AI development. Global conflicts and political struggles often revolve around energy, and the future development of AI is also dependent on energy support. Data is another crucial factor, and companies that have access to large amounts of user data have an advantage in AI development.
At Binance, we are also looking for good AI solutions. For example, the Greenfield product launched by BNB Chain earlier uses data through a privacy-protected network to ensure user privacy. This is our attempt to combine blockchain and AI.
Regarding which tracks to focus on, I believe that as a businessperson, it is necessary to keep an eye on and ponder various emerging tracks. Regardless of the track, as long as it is helpful to society and provides good products and services, it is a viable business.
My daily life is actually very simple. I work out three times a week, usually in the morning. After working out, I have a whole day of phone meetings. My goal is to cultivate a team with leadership qualities and build strong leadership within the industry.
Apart from meetings, I spend a lot of time studying organization and management, and communicating with the HR department. Recently, I have also added the task of writing emails to CZ, reporting work and sharing bits of life. My life is plain and simple, filled with work, exercise, spending time with family, and reading. That’s my day.
What considerations does Binance have for stablecoins? How will they develop in the future?
He Yi: Our logic regarding stablecoins is simple. Although we cannot say we accept all of them, we welcome cooperation with TUSD, FDUSD, or any other stablecoin in the future. The key is whether the qualifications and capabilities of the cooperation party match and whether we can reach an agreement. We have high expectations for the stablecoin track, but to operate it well, we need the right timing, favorable conditions, and the right people, rather than just setting up a stablecoin account and accepting funds.
After surpassing 200 million users, where might the new user growth for Binance come from? First, it is important to note that registered users do not necessarily mean active users. Some registered users may not engage in trading or depositing funds. To achieve a larger market scale, there needs to be more high-quality assets. If the market is lacking in high-quality assets, it involves the issue of bridging the gap. Our mission and thinking are focused on how to bridge the gap and make blockchain as user-friendly as the internet or AI, enabling ordinary people to use it directly. As long as the gap is bridged, scaling up the user base tenfold or twentyfold is not a problem.
I firmly believe that as long as the crypto industry can produce viable and high-quality assets, the market size can expand fivefold or more. Each cycle brings new applications and companies, and companies that persist and create value for the world will become industry leaders. Just like the top companies after the dot-com bubble, such as Apple, Amazon, Facebook, Google, etc., which continue to create value and become the top companies globally. We also hope to see such sustained growth and development in the blockchain field.
After surpassing 200 million users, what plans and strategies does Binance have to bring in more outside participants to the industry?
He Yi: After surpassing 200 million users, what plans and strategies does Binance have to bring in more outside participants to the industry?
In fact, Binance has always been making such attempts. 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, as you all know, we previously signed with The Weeknd, and later with Cristiano Ronaldo. Cristiano Ronaldo has 600 million followers on Instagram, and his daily likes often reach millions or even tens of millions. We hope to make more people aware of Binance and cryptocurrencies through these celebrity endorsements.
In addition, when users register on Binance, we hope they take the time to understand cryptocurrencies, rather than blindly following investment trends. Even when investing in meme coins, it is necessary to understand their nature and cycles to avoid impulsive actions. Our logic is that not all projects listed on Binance are of high quality; sometimes they are listed due to user demand. We first put some projects on the contract market, allowing users to choose to go long or short. If the long-term popularity of a project is uncertain, we first put it on the contract market, where users can choose leverage of one or two times.
We have also made some mistakes. For example, the Hook project was mocked as a “girlfriend coin,” and many people questioned whether the users of this project were genuine or if they were bought. We carefully studied their users and indeed, they were not typical crypto users; they were users who obtained rewards through registration and completing tasks, such as motorcycles, rice cookers, etc. These users are not typical crypto investors.
We have recently collaborated with some Web3 project teams for cross-game cooperation, attracting 1.3 million users, but only 56 of them became active traders because they were mainly there for earning rewards. In this process, some may question why we 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 responsibilities and influence. Although sometimes the investment may not yield immediate results, at least more people are seeing Binance and cryptocurrencies. Signing with Cristiano Ronaldo may not have brought in a large number of registered or active users, but at least more people have seen Binance.
The crypto industry has a lot of negative information and biases, but we will continue to push the industry forward and attract more outside participants, despite mockery and failures. As long as the goal is clear, we will steadfastly move forward.
In conclusion, we will continue to work hard to bring in more outside participants and promote the healthy development of the industry.
How will Binance’s development in Europe or other regions be affected after the regulatory settlement in the United States?
He Yi: Binance’s development in Europe or other regions may be somewhat affected after the regulatory settlement in the United States. As you may have seen, we had an executive facing difficulties 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 this new thing called crypto, claiming to overturn traditional finance, they naturally view it as a flood beast. In such circumstances, as a top company in the industry, we will face more pressure and challenges.
Many people believe that DeFi can solve all problems, but in reality, the development of the internet also went through similar stages. Although information freedom is important, the internet is still observed and regulated by governments around the world. The blockchain industry will also face similar challenges. If it becomes completely decentralized, regulatory agencies, especially those in the United States, will take strong measures to crackdown on DeFi, and they won’t go easy on the CeFi part either. That’s why CZ is still in the United States at the moment.
If we want this industry to serve 1 billion users and drive the industry forward, we must resolve issues with regulations, 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 may encounter some challenges, such as not being able to provide contract trading in certain regions. In addition, the compliance team will become very large, and many decisions will require compliance and legal team approval. However, as long as the organization itself is strong and the strategy is correct, these stage-specific challenges will not affect the long-term goals. Overall, we still seek coexistence.
Coinbase also strongly supports embracing regulations. We may be the first exchange globally to actively embrace regulations, especially in the United States. In fact, there is much to learn from other competitors in the market, such as Coinbase, OK, Huobi, Bybit, Bitget, Bitmex, and others. Each company that has made it to this point has gone through many cycles, and there are many things we can learn from them. This industry is still in its early stages and requires joint efforts to expand the cake.