He Yi: Binance to launch decentralized exchange on BNB blockchain
On May 18th, He Yi, cofounder of Binance, conducted an online AMA on wechat group. During the 4-hour chat, she answered questions regarding hacking incident, buying an island, Sequotia dispute, Super-node election, Hainan plan. She also disclosed that the most precious possessions of hers and Changpeng Zhao were computer and cell phones. They owned no cars or houses, which, according to Chinese criteria, means they are not qualified for marriage. Below are some excerpts of the AMA.
1. We are just promoting the cryptocurrency industry globally.
First of all, we actively promote the legalization of blockchain and cryptocurrency industries in many countries around the world. We are very honored to be consultants in the field of blockchain and digital currency in Malta, Bermuda, Uganda and other countries to help them improve regulations in this new area. The Bermuda’s digital currency bill has already passed in the parliament. The problems encountered by Binance are also encountered by other exchanges as well. The “fugitive” image of Binance in China is probably due to the lack of communication in the country.
Regarding the question that Binance picked the “underdeveloped countries”, it is quite interesting. In fact, for example, Bermuda is a small country with a per capita income of more than $70,000. However, this country has developed far more than most countries in the world. In fact, it is more like Singapore. Most of the world’s insurance companies put their headquarters in Bermuda.
2.Hacker failed and Binance had no incentive to short the market.
In the hacking incident happened in March, the hackers failed to withdraw profits in trading VIA, which, on the contrary, were intercepted by the exchange precisely because of our risk-control system. Due to the lack media communication, some of the “Binance shorting” news were spread in the market. There are no motivations for the shorting story as it cannot withstand logical scrutiny.
3. Binance will not participate in any node campaign.
We never instruct users to buy a certain currency in any means. We don’t participate in any node election of popular projects. We are sure to be the winners when we participate in the node campaign. But it’s not fair for users as we are stakeholders in the project. Our employees can hold cryptocurrency but they are not allowed to speculate on them. New employee can’t use the currency. For entry, they need to report their investment in digital assets.
4. Personal relation doesn’t affect listing fee on Binance.
The listing criteria will not be affected by Binance acquaintance, celebrities or big investment fund endorsement. The project itself is the only evaluation standard. Therefore, the only channel we use is the listing submission page on the website. The team retrieves information online and different teams conduct assessments and research in different dimensions. Those projects that go through the first review will then have the opportunity to enter in-depth assessments. Most of the projects will not pass the first round and projects that have passed the initial review will often be shelved.
There are more than five dimensions in our internal assessment and then there will be several categories in the second round. Listing fee varies in accordance with different categories. Top-level project requires no listing fee.
5. Buying an island is a scam and it was planted on Binance.
The story of buying an island should be traced back to 2013. At that time, there was indeed a bunch of anarchists who initiated such a project online. But eventually it was proved to be a scam. However, I do not know why this matter of buying the island was planted on Binance.
It’s a very complicated thing if you want to build a country. For example, you need to have troops, diplomats and infrastructure, etc. This is a very absurd joke in itself. Binance will never did such a thing in the past, present and in the future.
However, we agree that there are some small countries that have very sound economic systems in their own right, and then they want to develop in the field of financial technology. Then we are willing to help them in the blockchain domain, achieving transformation and special position in the industry.
6. Response to Sequoia Conflict
I can’t make unlimited compromise because I knew Shen Nanpeng (Partner of Sequoia Capital) personally.
Sequoia was over-interpreted by everyone. The Hong Kong High Court has dismissed Sequoia’s filing. Attorney’s fees are borne by the other party and it is a particularly clear result.
In fact, we all know that in the traditional investment market in the past, VC is a key role that can help you get more investment. It can help you find more PE and help you go public listing. From this perspective, Sequoia is a very great and very successful company.
But for us as a blockchain company in rapid development, we were actually seeking help in branding and endorsement from renowned funds as we were very small at that time. Of course, I can’t agree that because I know Shen Nanpeng personally and then I could make compromised on certain key policies, or agree with whatever they want. I think this is quite complicated, because it is the conflict between the emerging industry and the traditional financing model. The other is the conflict between Chinese culture and Western culture.
7. Too much reading on the Hainan thing.
It is not possible to conduct bitcoin exchanges in China. This is the reason why Binance removed its office in China. I think we should not excessively speculate on the government’s next move.
8. We are at home everywhere to reduce systemic risks.
In fact our company is a real UN. Our employees come from more than thirty countries and we work together globally. In this case, some people will say that we are evading supervision, but we are not escaping from the supervision. We are reducing systemic risks.
In fact, sometimes I do not know which country Zhao Changpeng is in. Then he does not know which country I am in. Because we all have our parts to do. We are a universal family.
9. I hope that Binance will become a self-sustainable system, just like Bitcoin.
In the future, we will allow fiat trading but the prerequisite is it must be fully legal and compliant. It is already underway.
Binance will be based on the Binance blockchain, which will run our decentralized trading platform. BNB will be the fuel in the ecosystem. BNB is the universal credits in our system. In the past, you used fiats to deposit. You use BNB in our entire ecosystem.
We have repeatedly emphasized that we must protect “jiucai” (newbie investor). Some people think that such nickname is a negative term. In fact, “Jiucai” refers to all those who hold tokens. In the long run, we hope that Binance will become a self-sustainable system just like Bitcoin. In this blockchain and digital currency industry, we will be able to manage and transfer our own assets.