Former Binance CEO Changpeng Zhao has revealed plans to use cryptocurrencies as the foundation for his newest business project. This information was made public following a Department of Justice (DOJ) legal case in which CZ promised to return to the United States two weeks before his scheduled sentencing on February 23, 2024, in exchange for a sizeable $175 million release bond.
CZ’s decision to use cryptocurrencies for his new business, despite the potential legal ramifications, has been described as a demonstration of his unwavering faith in the technology’s ability to transform several aspects of the financial landscape.
CZ seeks to negotiate a funding environment that banks and other financial institutions customarily mediate by employing blockchain-based assets. It is believed that cryptocurrencies may provide an avenue for encouraging fundraising systems that work like Decentralized Autonomous Organizations (DAOs).
The proposed fundraising framework would manage and distribute research funds according to the community consensus. This model is designed to align with the interest of the public, as well as serve the people’s immediate research needs.
CZ’s Choice Of Cryptocurrency Investment Linked To Its Decentralized Nature
Describing the nature of CZ’s project, the decentralized nature of cryptocurrencies can enable smaller research teams and creative projects to obtain the funding they require independently of conventional intermediaries.
By leveling the playing field and granting diverse projects equal access to resources, this democratization of funding has been described by industry professionals as being consistent with the fundamental ideas of decentralization. As of press time, the details of CZ’s new business are still unknown.
According to CZ’s recent comment on his prospective business idea, said that he will be exploring other ways to leverage the opportunities that are domiciled in the cryptocurrency industry to support biotechnological research.
CZ’s Choice Of A Cryptocurrency A Good Development, Tang Speaks
Analysis by industry experts says that CZ’s choice to invest in his next project using cryptocurrency represents a big step forward for the cryptocurrency market. Arman Shirinyan from U.Today wrote that this action highlights “the revolutionary potential of blockchain and cryptocurrencies in transforming funding models and enabling a more decentralized and inclusive financial landscape, independent of the legal ramifications and the complexities of CZ’s case.”
CZ made it clear that cryptocurrencies have the propensity to invent a new path for researching finance through the provision of an improved direct investment channel. CZ’s methods show the displaying of the relevant structure of the cryptocurrency, as it can help balance the funding structure, and empower smaller research projects by groups to secure the required capital without the help of an intermediary.
However, the current Binance CEO, Richard Teng, in his recent post on X on November 27, said that the company would continue CZ’s initial plan for the company, especially with the Web3 adaptation amid his (CZ) departure. Tang said that he is willing to assume the position, knowing that there will be more opportunities to keep the Binance community updated with the current developments.
Tang also added that Binance is planning to capitalize on the rapidly growing cryptocurrency industry. He cited data that 420 million people, representing 5.2% of the global population, are using cryptocurrency. Tang revealed his optimism that with conventional money going electronic, the population of cryptocurrency users would certainly grow up to 20%.