Binance CEO Says Many Crypto Players ‘Get Distracted’ by Money

DAVOS, Switzerland — Those in the crypto industry should focus on the fundamentals of crypto technology rather than get distracted by the money in the sector, Binance CEO Changpeng Zhao told an audience at the World Economic Forum's annual meeting here on Wednesday.

“When the tide recedes, all the hype goes away, and it’s the fundamentals that matter,” Zhao said as he spoke remotely by a video link. “In our industry, we’re so close to the money … so many people get distracted by that, and that’s all they focus on."

Binance, which is the world's largest crypto exchange by trading volume, has come under scrutiny after accounting firm Mazars retracted the company’s “proof-of-reserves” report, which sought to verify the exchange’s holdings.

Last week, Binance admitted that its stablecoin, BUSD, wasn’t always fully backed with reserves.

In the Davos' speech, Zhao reiterated his belief that the development of crypto as a new default payments system has to be gradual and that the concept behind the technology won’t be erased.

“We actually need to proceed slowly and carefully and steadily, so that we don't cause major disruptions,” he said. “It’s not about any single coin, blockchain or exchange, it’s the fundamental technology that’s being evolved and will continue to evolve.”