CZ AMA | Anticipating a significant increase in trading activities over the next year and a half, Binance is actively preparing its systems.

On July 5th, Binance founder Zhao Changpeng, also known as CZ, held a routine AMA on Twitter Spaces. During the session, he was asked about his views on the recent surge of institutional applications for spot ETFs, progress on lawsuits, future developments, and other related topics. CZ not only did not see institutions like BlackRock as threats, but instead welcomed more and larger institutions entering the cryptocurrency space.

Blockchain Will Eventually See Mass Adoption

When asked about the practical application of blockchain technology in real life, CZ believes that the field of cryptocurrencies is still in its early stages, with actual use cases in daily life yet to be successfully developed or reaching a level of mass adoption.

However, he emphasizes the unlimited potential in the cryptocurrency field. While Binance is still focusing on building infrastructure such as wallets and underlying public chains, he believes that mass adoption will eventually be achieved over time.

Unable to Disclose SEC Lawsuit Progress

When asked about the progress of the lawsuit with the SEC, CZ frankly stated that he is unable to disclose too much information and feels that there is already enough public information related to the lawsuit.

CZ also believes that this will be a slow process. He mentioned that the Ripple lawsuit has been ongoing for many years, and Kraken, Coinbase, and Binance are facing similar situations, but they are working hard to find solutions.

Note: Kraken has paid a $30 million fine to the SEC for not registering its "crypto asset staking service plan," which is not similar to Binance's current situation.

Expected Surge in Trading Volume in the Next Year and a Half

CZ pointed out that compared to the bleak period following the collapse of FTX in November last year, trading volume has stabilized in recent weeks, including factors such as the newly applied Bitcoin spot ETF and the Bitcoin reward halving event expected in mid-2024.

Looking at historical trends, bull markets always occur a year after halving. Binance hopes to be prepared for increased trading activity. We are actively preparing our trading systems to handle the high trading volumes expected in the next 6 to 18 months," CZ said.

However, CZ also added that no one can predict market trends, and he himself always leans towards a bullish market.

Are Institutions Applying for Bitcoin Spot ETFs Successively Because They See Binance as a Threat?

CZ stated that these traditional financial institutions are not threats. He believes that the entry of large companies will bring huge advantages to the cryptocurrency field, and institutions and Binance's service clientele are completely different. He said:

If traditional institutions start to compete with Binance, we might lose a small number of users, but look at the users participating in the AMA. Ten users, maybe 5 or 6 are from Africa. These people will not go to BlackRock, right? The overlap of users is very small.

He emphasized that Binance welcomes more institutions to enter, and the bigger, the better.