Binance launched its decentralized exchange in March in order to foster the crypto industry’s long-term vision of peer-to-peer trading. Changpeng Zhao or more popularly known as CZ, CEO of Binance, spoke about his long-standing critic, Nouriel Roubini’s take on the ailing problem with exchanges such as wash trading and fake trading volumes, in an interview with Forkast.news, in Taipei.
Roubini has previously called many influencers and CEOs of exchanges as ‘snake oil salesman’ due to issues like wash trading, pump and dump, and fake trading volumes. However, CZ is of the view that such practices are not new in the financial ecosystem and have existed in the traditional market as well. CZ said,
“Every industry there are issues. so we’re not ignoring the issues that exist. We’re not in a perfect world, we’re not using perfect technology that does not have no limitations or has no flaws. It’s not so much that the technology is flawed. In the traditional market, there is wash trading, front running, there is all these issues. You just got to deal with the issues. The technology is a significant improvement based on traditional technology. “
Technologically, crypto has advanced from where it began and if it does not solve a problem, it provides its usefulness in other areas and according to Binance’s CEO, “it is useful enough that it will create a whole new future. ”
However, even with the current price movement of Bitcoin [BTC], many users have speculated shady activities like wash trading and pump-and-dump in the market. Binance on the other hand, claims to be fighting wash trading by looking at the data of who is trading on its centralized exchange. Due to this, Binance has managed to position itself as being among the few trusted exchanges in the world, according to Bitwise and research reports by other organizations.