Changpeng Zhao, better known as CZ, has been a powerful force in the world of cryptocurrency. If the early release from prison reported is true, it will no doubt be both exciting and speculative. He may no longer be running Binance, but few would argue that his voice will still be loud and clear.
At the moment, there is a lot of anxiety regarding where he goes next and how his endeavors will work themselves out. What impresses me most from this article is the fact that his legal hurdles are far from over, CZ is far from done with the crypto world. I firmly believe that with a $60 billion fortune and running Binance no longer, the story of CZ in crypto has only been detoured.
The case of Binance is intriguing, it's really an example of a resilient company that has been successful under the present leadership.
Bottom line, that he has kept growth going, with the above 229 million users in some very tenuous legal and changing regulatory circumstances, basically is a testament to one simple fact: Binance is not just CZ's vision anymore, it is his baby, which has grown up enough to stand on its own.
But I really can't shake off the feeling that CZ stepping down from day-to-day operations does not mean he is out of the game.
It is the nature of business life that companies move on, but his shadow will loom large over Binance, not least given his substantial shareholding.
It's among the stuff that keeps me curious to know what else CZ will pull off. Giggle Academy, his philanthropic project for free education to the impoverished children, does really sound noble, but is this an end-game for a man who has had such a central role in revolutionizing financial systems? It is perhaps a softer direction, but I will not be surprised if somehow he finds a way to interlink new ventures with the ever-evolving crypto space. After all, a man like CZ simply doesn't walk away from innovation.
While the wider crypto space has certainly witnessed its fair share of scandals, what sets CZ's case apart was the reason for his being sent to prison.
He was fined for breaching anti-money-laundering controls. What this is, a reminder, if nothing else, is the puzzling landscape in which crypto exists, especially within the United States. It is always a tug-of-war between innovation and regulation, and while Binance may have settled for billions, they still remain within the crosshairs of regulators to this day.
The question is, where does one really draw the line between bending the rules and actually following them?
I don't think that has been decided yet in the crypto world.
As far as Binance's native token goes, the recent price appreciation seems to show confidence in how the exchange will go into the future without CZ at its helm. It indeed looks like the market has shrugged this off.
My two cents: I find that telling, it almost seemed like the market learned to decouple CZ from Binance.
The platform is strong, and it is going nowhere anytime soon, with or without its founder.
That would be a testament to good infrastructure that CZ helped build but also to the team that has been at the helm since then.
Now, I must say that the fall of CZ somewhat was expected. The crypto space, all talks about decentralization aside, just isn't above the legal and financial potholes of managing billions of dollars. The more mainstream crypto goes, the more regulatory oversight there will continue to be.
Maybe the case of CZ is just the tip of the iceberg from an enforcement action perspective against the biggest crypto players.
To me, it begs a bigger question: How disruptive is crypto from what we think it is, or is it just becoming part of the mainstream system it was intended to upend?