He Yi Community Communication Full Text: Discussing the security of trading, listing and delisting coins, and "sister coins," what to write in emails to CZ every day?
Recently, Binance's registered users have surpassed 200 million, and to celebrate this, an AMA was held where Binance co-founder He Yi answered some questions of public interest.Editor: Wu Says Blockchain
Recently, Binance has surpassed 200 million registered users and held an AMA for this occasion. Binance co-founder He Yi answered some of the questions that everyone is concerned about, including the recent incidents of asset theft through wash trading, the contradiction of listing large projects with high FDV, and the criteria for delisting zombie coins. In addition, He Yi mentioned that she writes emails to CZ every day and also needs to write reading notes; her daily life mainly consists of fitness, phone calls (conference calls), and putting children to sleep, which she finds very monotonous. He Yi jokingly referred to "girlfriend coins," indicating that Binance is trying to explore whether it can bring some normal business models, while also enduring some ridicule and failures in the process.
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Does Binance have any new developments to share regarding user security?
He Yi: First of all, I want to say that there is no absolute security in safety; we must remain vigilant at all times. This applies not only to exchanges but also to our own asset security management, whether using hardware wallets or e-commerce wallets.
Binance has learned from past mistakes and has indeed invested heavily in security. Currently, our investment in security is a continuous process. For example, previously, some users had their assets stolen due to clicking on third-party plugins, and we have improved our risk control standards and levels in this regard.
We have implemented dual risk control regarding wash trading. First, when there is significant price volatility, big data will capture information and trigger alerts, followed by manual confirmation. At that time, we captured the price fluctuation information, but due to the large number of trading teams involved, the profit-making parties were not singular, so the risk control judgment was not a major issue.
For losses caused by users clicking on plugins, we understand users' expectations of us and hope that Binance can provide a safety net for them during risky operations. We have raised the requirements for our security and risk control teams and are continuously iterating our security measures.
Some users have had their assets stolen due to account sharing. We can trace the specific situation through complete user behavior logs. We advise everyone to avoid clicking or sharing suspicious links, especially videos, live streams, etc. If clicking is necessary, it is recommended to keep the trading account on a relatively independent and secure phone, especially for users with significant assets.
When downloading the app, check whether it is the official version to avoid downloading phishing apps. Recently, there has been a lot of panic in the community, with many different voices questioning whether trading platforms are engaging in self-dealing. We believe that a well-operated trading platform would not engage in such behavior, as this is a healthy business model, and our competitors are also doing well. Such rumors can greatly damage users' trust in the entire industry. The above is a summary of the recent frequent security incidents.
How does Binance view high FDV and low circulation projects? Will it intervene in opening prices and token distribution?
He Yi: First, I want to provide a framework. This framework is my personal observation and understanding and does not represent official logic or absolute standards. The blockchain industry has currently entered a special stage, similar to the process of technology moving from niche markets to mass markets. For example, early technologies like VR and 3D printing were very popular but failed to achieve large-scale application because they did not cross the chasm from niche markets to mass markets. Tesla's success lies in the commercialization of electric vehicle technology.
In the blockchain industry, we may be building a more decentralized and efficient micro-financial system. In this system, scenarios like trading, assets, and anti-inflation already have mature business models. However, the bigger challenge is how to truly help the blockchain industry move towards mass application, as there are almost no successful cases in practical scenarios like gaming and social networking.
I hope to see more projects with real business models built on the blockchain, rather than just remaining in abstract concepts. The anti-VC wave and the popularity of memecoins reflect the lack of quality assets in the market. Many VCs invest in projects at high valuations, but these projects have not produced good business models. Airdrops and similar methods are merely data-driven, while trading platforms are pressured by user demand to list tokens, but in the end, no one is truly satisfied, and everyone suffers instead.
We hope that every project has sustainable growth and a good business model, but in practice, trading platforms cannot control project parties and market makers. We can only provide guidance, such as hoping that project parties can offer more airdrops to users, but we cannot intervene in pricing and execution. When recruiting projects, we hope to find teams with undervalued assets and good business models, while also recruiting market makers. However, excessive demands can lead market makers to shift liquidity elsewhere.
The issue of high FDV causes pain for users and investors, with only a few project parties profiting. This industry is an emerging market, and the rules for issuing tokens can be customized. Investors and users need to spend more time researching and voting with their feet. We continuously iterate our standards and requirements for project parties and market makers, but this process is a battle of wits.
We hope to see more friends willing to solidly work on projects in the market, not just issuing air projects. True success must withstand the challenges of human nature. I hope this wave of bubble can leave behind more excellent projects and assets.
In the future, we hope that blockchain assets can be utilized by more entrepreneurs in investment incubation and funding, rather than just locking users into airdrops and trading platform scenarios. The entire industry needs to cross the chasm.
How to maintain high enthusiasm and abundant energy?
He Yi: From personal experience, I come from a poor background and have seen both the highs and lows of the world. When you see the disparities in this world, you start to think about what you want to do or leave behind in it. I might say that material legacy is your children, a continuation of DNA. But if there is an opportunity to truly change the world, why not give it a try? To leave something transformative like Elon Musk or Amazon. In fact, the amount of money a person can spend in a lifetime is limited; I am not someone who enjoys luxury goods. My greater passion lies in how to rebuild myself, break through my own ceilings, and see my own growth.
I focus on self-improvement. For example, last night I sent a message saying I woke up after 6 hours of sleep to work out. I did indeed get up to work out and was severely punished by my coach. My requirements for myself can be divided into several modules: the first is health; fitness is not only about body shape but also about health. The second is the iteration of self-awareness. I have recommended a book called "Mindset: The New Psychology of Success" on Twitter, which helps me with self-iteration. My advantage is that I can quickly internalize what I read and link it to my own knowledge. The third is what to leave behind in this world. If I can change the world, I want to give it a try. This is why I have consistently remained on the front lines for many years.
If you ask me if I want to retire or slack off, of course, I do. But I have a goal: I hope to build a company that lasts for generations. This is not only a requirement of personal ability but also a requirement of organizational building capability. If every executive at Binance could replicate my philosophy, they might be more skilled than I am in their respective areas, such as our VIP user managers being more knowledgeable about finance and our technical team being more adept at technology. My goal is to build a strong and sustainably growing organization.
In this regard, my role model is Duan Yongping, who is very low-key but successful in the history of entrepreneurship in China. He founded Little Boss and BBK, which later branched out into Vivo, OPPO, and Xiaotiancai watches. He not only succeeded in entrepreneurship but also achieved great success in investments, such as investing in NetEase and Pinduoduo. Duan Yongping's success proves that success can be replicated, and I hope my ability to succeed can also be passed on to more people, cultivating more high-potential talent for Binance and bringing good ways of thinking, concepts, and corporate culture to Binance.
This is what I hope to do now and am working hard to achieve. I also welcome more potential friends who are interested in Binance to join us.
How to select Launchpool and MegaDrop projects?
He Yi: We do not select projects through Launchpool or MegaDrop first; rather, we select projects first and then see whether they are suitable for MegaDrop or Launchpool. Initially, we started with Launchpad, but due to regulatory issues regarding token presales in many countries and regions, we switched to airdrops. We first launched Launchpool for airdrops and found that many project parties wanted to acquire real users, and Binance's token-holding users are relatively more genuine.
Binance's Web3 wallet has KYC, which can prove that users are real. For example, recently, ZK projects were criticized because they had many users from cat-raising studios who were actually bots. If real users were acquired through Binance's Web3 wallet from the beginning, the situation would be much simpler. Therefore, Launchpad, Launchpool, and MegaDrop are all solutions for project parties to find real users while also providing benefits for Binance users.
Sometimes we choose to list projects because the project parties are willing to provide more airdrop shares, but this decision is not always correct. Therefore, we continuously reflect and listen to user feedback. For example, high FDV projects have low circulation after being listed on other platforms, rising in the short term but then falling in price. There is no standard answer; for instance, whether circulation or deflation models are necessarily good needs to be evaluated based on specific situations.
Our goal is to find quality projects with long-term development intentions or successful potential teams, and then decide whether to place them in Launchpool or MegaDrop. If the share provided by the project party is low, we place it in Launchpool; if the share is high, we place it in MegaDrop. Regardless of the name, the key is to help project parties acquire real users while providing benefits for Binance users.
We will adjust our project selection criteria based on market feedback to ensure the health and long-term development of the market.
Does Binance have standards for delisting zombie coins? How to manage and phase them out?
He Yi: We conduct regular reviews of tokens that have already been listed, and the review is not limited to social media activity but also includes ongoing product development, liquidity, and whether there are significant negative news. Additionally, we will evaluate based on the regulatory requirements of various countries and regions. If we find tokens with high risks, we will label them for monitoring and spend more time observing them.
Recently, our frequency of delisting has decreased, mainly because some project parties have become active again during the bull market. We have a dedicated department responsible for monitoring listed projects, including on-chain incidents, hacking events, and user feedback. When delisting, we conduct detailed analyses to ensure that the delisting decision is accurate and not simply based on poor project performance.
Delisting can harm both project parties and token holders, so we strive to remain objective and strictly enforce the standards for listing and delisting. People should not assume that some "shell" projects on Binance can be bought, as these projects may be delisted at any time. We firmly oppose such shell-buying behavior, and once discovered, we will directly shut down the project.
How do you view the market capitalization comparison with Coinbase? Where is the growth potential for BNB?
He Yi: First of all, I believe that Coinbase is essentially a stock security, while BNB is a token; the two are not in the same arena. Coinbase's stock cannot be used on the Binance platform like BNB. BNB not only has application scenarios on Binance and a continuous burning mechanism but also benefits from BNBChain.
BNB is widely used on the Binance platform and is referred to as the "golden shovel," which can be used for a large amount of fee deductions. Although the current momentum of BNB Chain is not as strong as some large L2, L1 ecosystems, or the user base of TON, compared to developer-centric public chains like Ethereum or Solana, BNBChain has more real Web3 users and builders.
I believe that an important direction for BNBChain in the future is to bring blockchain technology into the lives of ordinary people, helping more entrepreneurs and developers push the entire blockchain industry into the next stage. From this perspective, Coinbase and Binance are on completely different paths. Coinbase is an excellent trading platform that achieves profitability through cooperation with Circle, while Binance is taking a different route in the blockchain arena.
In the process of launching many projects, Binance has empowered BNB through continuous distribution of benefits and airdrops. Short-term price fluctuations do not represent much; we are more focused on the long-term efforts and goals of the team. The co-construction of BNB Chain and the entire community requires the joint efforts of users, communities, entrepreneurs, and developers.
What sectors to focus on, and what is your view on AI? How do you spend your day?
He Yi: I will first answer the question about AI. In fact, I discussed my understanding of AI in the last AMA. I believe that blockchain changes labor relations and distributes benefits, while AI represents a huge transformation of productivity. For example, many trading platforms and products operate in multilingual environments, and if AI is utilized well, it can save a lot of translation costs while improving efficiency. This is a specific example of productivity enhancement. In the future, the productivity improvement of AI will manifest in more areas, including design, marketing, etc., with lower costs and higher efficiency.
AI can be divided into several modules. The application side is the most common, such as OpenAI's chatbots, which can help write proposals, design, create videos, etc. Above that are large model teams, which are not large in scale but have very strong professional capabilities. The next step is computing power, which is why Nvidia's stock has performed so strongly. Nvidia's leading position in chips makes it difficult for other competitors to catch up. The advancement of technology has made the improvement of computing power more significant.
Energy and data are the two key industries supporting AI development. Global wars and political struggles often revolve around energy, and the future development of AI will also rely on energy support. Data is another key factor; companies that hold a large amount of user data have advantages in AI development.
We at Binance are also looking for good AI solutions. For example, the Greenfield product launched by BNB Chain uses a privacy protection network to utilize data while ensuring user privacy. This is our attempt to combine blockchain and AI.
Regarding sector selection, I believe that as a businessman, one needs to keep an eye on and think about various emerging sectors. No matter what sector it is, as long as it is helpful to society and has good products and services, it is a viable business.
My daily life is actually very simple. I work out three times a week, usually getting up early to exercise, and after working out, I have a whole day of conference calls. My goal is to cultivate a team with leadership and build strong leadership across the industry. Besides meetings, I spend a lot of time researching organization and management, communicating with the HR head. Recently, I have also added the task of writing emails to CZ to report work and share snippets of life. My life is simple and unadorned, filled with work, fitness, family time, and reading from morning till night; this is my day.
What considerations does Binance have regarding stablecoins? How will they develop in the future?
He Yi: Our logic regarding stablecoins is very simple. While we cannot say we accept all, we hope this is a continuous competition. In the past, BUSD was a collaboration with third parties. For us, whether it is TUSD, FDUSD, or more stablecoins in the future, we welcome cooperation. The key lies in whether the qualifications and capabilities of the partners match and whether we can reach an agreement. We are very optimistic about the stablecoin sector, but to operate this well requires the right timing, location, and people, not just setting up a stablecoin account to accept funds.
After Binance surpassed 200 million users, where might the new user growth come from? First, it should be stated that registered users do not equal active users; some registered users may not engage in trading or deposits. For the market to reach a larger scale, more quality assets need to emerge. If the industry is overly competitive, it is due to a lack of quality assets, which involves crossing the chasm. Our task and consideration are how to cross the chasm and make blockchain as accessible as the internet or AI, allowing ordinary people to use it directly. Once the chasm is crossed, it will not be a problem for the user scale to increase tenfold or twentyfold.
I firmly believe that as long as the crypto space can produce grounded and quality assets, the market scale can expand fivefold or even more. Each cycle will see new applications and companies emerge, and those that persist and create value for the world will become industry leaders. Just like the leading companies after the internet bubble, such as Apple, Amazon, Facebook, and Google, they continue to create value and become top companies globally. We also hope to see such sustained growth and development in the blockchain field.
After surpassing 200 million users, what plans and strategies does Binance have to bring in more external forces to the industry?
He Yi: After Binance surpassed 200 million users, what plans and strategies do we have to bring in more external forces to the industry?
In fact, Binance has been making such attempts. Whether from a marketing perspective, through our academy, charitable projects, or even in project listings, we have made some attempts. We have also received some negative feedback. For example, everyone knows that we previously signed The Weeknd, and later we also signed Cristiano Ronaldo. Ronaldo has 600 million followers on Instagram, and his daily likes often reach millions or even tens of millions. We hope to leverage these celebrity effects to let more people know about Binance and cryptocurrencies.
In addition, we hope that when users register on Binance, they can take the time to understand cryptocurrencies rather than blindly following trends to invest. Even when investing in meme coins, it is necessary to understand their essence and cycles to avoid impulsive actions. Our logic is that the projects listed on Binance are not necessarily all of very high quality; sometimes it is due to user demand. We will first place some projects in the contract market, allowing users to choose to go long or short. If the long-term popularity of a project is uncertain, we will place it in the contract market first, where users can choose one or two times leverage.
We have also made some mistakes. For example, the Hook project was mocked as a "girlfriend coin," and many people questioned that the users of this project were fake and bought. We carefully studied their users and found that they were indeed not typical crypto users but rather those who registered and completed tasks to earn rewards, such as motorcycles, rice cookers, etc. These users are not typical crypto investors.
Recently, we have also engaged in cross-game collaborations with some Web3 project parties, attracting 1.3 million users, but only 56 became trading users because they mainly came for the airdrop. In this process, people may question why we would list these projects, but we hope to find applications and business models that can change the lives of ordinary people through these attempts.
Furthermore, Binance Academy and charitable projects are also taking on more industry responsibilities and influence. Although sometimes the investment does not always yield results, it at least allows more people to see Binance and cryptocurrencies. Signing Ronaldo may not have brought a large number of registered users and trading users, but it at least made more people aware of Binance.
The crypto industry has a lot of negative information and biases, but we will continue to firmly promote the industry forward, guiding more external users to join. Even if we endure some ridicule and failures in this process, as long as the goal is clear, we will move forward steadfastly.
In summary, we will continue to work hard to bring in more external forces and promote the healthy development of the industry.
After the regulatory settlement in the U.S., what impact will it have on Binance's development in Europe or other regions?
He Yi: After the regulatory settlement in the U.S., Binance's development in Europe or other regions will be somewhat affected. You may have also seen that one of our executives encountered trouble in Nigeria. From a regulatory perspective, traditional finance has a history of hundreds of years, and the regulatory system has been established step by step. Therefore, when they see crypto as a new thing claiming to overturn traditional finance, they naturally view it as a threat. In this situation, as a leading company in the industry, we will face more pressure and challenges.
Many people believe that DeFi can solve all problems, but in fact, the development of the internet also went through a similar stage. While information freedom is important, the internet is still subject to observation and regulation by governments around the world. The blockchain industry will also face similar challenges. If it is completely decentralized, regulatory agencies in various countries, especially in the U.S., will take strong measures against DeFi, and they will not be lenient with the CeFi part either. This is why CZ is still in the U.S. at the moment.
If we want this industry to serve 1 billion users and push it forward, we must reconcile with regulatory agencies, build consensus and trust, and find a way to survive. When the industry scale is large enough, it must demonstrate its positive impact and how it can complement the existing financial system, improve efficiency, and achieve peaceful coexistence. This is the direction we are thinking and moving towards.
In this process, we will encounter some challenges, such as being unable to provide contract trading in certain regions. Additionally, the compliance team's size will become very large, and many decisions will require the approval of compliance and legal teams. However, as long as the organization itself is strong and the strategy is correct, these temporary challenges will not affect long-term goals. Overall, we are still seeking coexistence.
Coinbase is also very supportive of embracing regulation. We may be the first exchange globally to actively embrace regulation, especially doing very well in the U.S. In fact, all the competitors in the market, such as Coinbase, OK, Huobi, Bybit, Bitget, Bitmex, etc., each company that has made it to today has gone through many cycles, and there are many lessons for us to learn. This industry is still very early, and we need to work together to grow the pie.
