The Impact of Currency King Showdown between CZ and SBF on the Future of Exchanges

How does the “Battle of the Crypto Titans” between CZ and SBF affect the future of exchanges?
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Is there a winner in the “Battle of the Crypto Titans”? In the book “Infinite Storm: The Rise and Fall Symphony of the FTX Empire,” which records the rise and fall of FTX, author Michael Louis describes the attitudes of FTX and Binance, two exchanges, towards “regulatory compliance” as follows: “Binance is like the bully in class, and FTX’s unique ideas are like the oddball in class.”
Returning to 2021, the book “Infinite Storm” states that at the time, SBF believed that obtaining a license and complying with regulations would eliminate non-compliant competitors, while CZ, the founder of Binance, chose to ignore new regulations. Winston, co-founder and Chief Revenue Officer of XREX, mentioned in this episode that the two individuals were not completely opposed in their regulatory attitudes, and in the battle between attackers and defenders in the marketplace, the oddball may indeed be an oddball, but who is the bully remains to be seen.
Winston believes that “the essence of law is to restrict human behavior, while technology changes human behavior,” and regulatory risks are challenges that the startup industry must bear.
With the establishment of the Virtual Currency Association, Taiwan officially entered the era of regulation in 2024. Winston, the Vice Chairman of the Association, observed that regulatory agencies in Taiwan actually have a high level of understanding of the industry. “They (regulatory agencies) absorb new knowledge quickly, but they do not overly trust the industry.”
Overall development is like a short poem, although the pace may be slow, it can develop steadily and at ease.
In the era of regulation, centralized exchanges will gradually embrace regulation. Operators who are the first to comply with the rules and complete compliance and licensing can build a “moat” in business competition. On the other hand, regulation will also stimulate the rapid development of the “decentralized” market.
In this showdown described as a “bully” versus an “oddball,” there may not be a true loser or winner, and this kind of competitive relationship will continue to play out.
Winston analyzes that in the end, the development of exchanges will see the coexistence of decentralization and centralization, each with its own characteristics and advantages. When everything has order and clear rules to follow, centralized exchanges will leave the wild era, and formal forces and large institutions will gradually enter, moving towards a more institutionalized direction.
Web3’s Westward Expansion
Hosted alternately by Wayne Huang and Winston Xiao, co-founders of XREX Exchange, and Yoyo, Senior Director of Communications at the XREX Group, “Web3’s Westward Expansion” provides an understanding of the concept of decentralization and a comprehensive view of the Web3 world.
Summary of this episode:
On the topic of compliance, what are the epoch-making meanings and influences behind the diverging ideas of CZ and SBF in 2021?
Who is the “bully”? Who is the “oddball”? It’s hard to say.
How is the relationship between operators and governments in terms of the law restricting human behavior and technology changing human behavior?
Can “landing in different markets” build a competitive moat?
What is “regulatory risk”? How should exchange operators control it?
The great confrontation between centralization and decentralization! What will the future of exchanges look like?
The first physical gathering of “Web3’s Westward Expansion” is coming! Publicly solicit the topics you most want to hear.
Produced jointly by XREX Exchange and “WEB3+” under the media outlet “Digitimes,” the podcast program “Web3’s Westward Expansion” is approaching its 50th episode!
“Web3’s Westward Expansion” will hold its first offline gathering in the fourth quarter of 2024. What topics would you like to hear the three hosts discuss on the spot? Do you have any feedback you want to give us? Please fill out the form below to let us know your thoughts.
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Music source
MusicbyAden – Earth
Download: Musicbyaden – Earth
Earth by MusicbyAden is licensed under CC BY-SA 4.0CC
Content in this episode is a joint collaboration between XREX and “WEB3+,” a blockchain media outlet under Digitimes.