Binance’s strategic investment in Multicoin

MC Mandy: Welcome both of you, and welcome everyone to "Block 101". Special thanks to Binance for inviting me to host today's event. It is also a great honor to invite Binance VP Ling and Multicoin's Mable boss today.

Binance announced its strategic investment in Multicoin yesterday, which is also Binance’s first investment in the field of crypto funds. Today, let’s chat with the two about the logic behind the investment, as well as the upcoming business cooperation. First of all, I would like to invite the two bosses to briefly introduce themselves. Although both of them are very well-known opinion leaders in the encryption community, I believe that there is a lot of new traffic. Binance has a lot of new registered users every day. Introduce yourself.

Mable: I’m Mable, and I’m from Multicoin Capital. Our company is an investment company headquartered in Austin, Texas. We have two funds under our umbrella. One is responsible for investing in private equity, that is, venture capital, and the other is mainly in charge of liquidity. Assets, is a hedge fund.

We are familiar with investment research reports, and every member of our team is more active in outputting some opinions to communicate with the market. I am very glad to be invited by Binance to have a chat today, and thank you, Boss Mandy, for hosting.

MC Mandy: Thank you for Mable's introduction. You can also follow Mable's Twitter, Weibo and her 51% podcast. Okay, boss Ling, please introduce yourself.

Ling: My name is Ling, and I'm in the investment team of Binance. Our team mainly does investment incubation work, from early project incubation, support to developers, to relatively mature investment and market launch, to end-to-end investment and service work that may be end-to-end exit from the market in the middle and later stages of the project.

From the perspective of the platform, we may include several major blocks, a strategic investment and merger, mainly around the core business of Binance to make strategic investment and layout, including the expansion of new markets, new business and product lines, the growth of new users, etc. etc.; the second is ecological investment based on the early layout of different tracks in the industry, mainly through Binance Labs, launchpad, launchpool and other platforms to fund and support projects at different stages. Last year, we also launched the BSC seed fund to support the ecological development of Binance Smart Chain.

2

MC Mandy: Understood, let’s ask Boss Ling to introduce some of Binance’s investments and acquisitions in 2020.

Ling: 2020 is still a relatively fulfilling year. We have made different attempts and explorations in different business lines. The overall investment is mainly divided into several directions and sectors.

The first is strategic investment and mergers and acquisitions. At the beginning of the year, we made a strategic investment in Indonesia’s first compliant exchange called Tokocrypto. At the same time, we acquired Swipe, a Crypto distribution company in Southeast Asia. This team also launched it in July last year. Currently, users in Europe can apply for Binance Card. In addition, in the middle of the year, it acquired an industry-leading decentralized travel payment platform called Travala. From the perspective of strategic investment and mergers and acquisitions, we have rapidly expanded new business lines and products through investment and mergers and acquisitions.

In terms of layout for the early track and field of the industry, we mainly made a lot of investment in the DeFi field, including supporting BSC’s wheat wallet in the early days, and we also jointly invested with Multicoin, and others like Decentralized exchange platforms such as DODO and 1inch.

In addition, after the launch of the Binance Smart Chain last summer, we have successively funded about 39 projects, covering games, DeFi, NFT, and some tool platforms. Therefore, from the perspective of the whole of 2020, investment is relatively intensive and diverse.

What's more interesting is that last year, because of the relatively hot DeFi boom, in order to lower the threshold for platform users of centralized exchanges to participate in mining, we also launched a platform like Launchpool, which provides more friendly mining opportunities for users. From the start to today, we have probably launched more than 17 projects one after another.

MC Mandy: Okay thank you Ling. In addition to talking about some equity investments and mergers and acquisitions just now, I also focused on DeFi investment. Multicoin is the world's leading encryption fund in the DeFi field. In fact, several projects happened to be listed on Binance this year, including GRT. , ALPHA, RUNE, etc., may be the 100 times coins that investors are more familiar with, so I also ask the owner of Multicoin to talk about the investment landscape of Multicoin in 2020?

Mable: We have three major directions. In addition to Bitcoin, which is a non-sovereign currency that you may be familiar with, the other two directions are Web3 and open finance. Web3 is a theme of data sovereignty and freedom. For this, we actually have to return to some public chains that were deployed in 2019 or even 2018. Our investment is based on the stack, starting from the infrastructure. From our point of view, a very important function of the blockchain is transactions, so we think performance is very important.

After laying out the public chain and some expansion facilities, in 2020, including the second half of 2019, we have actually seen a lot of DeFi traffic in the entire market have already risen. Our investment is more focused on the fit between the market and products, so starting from the second half of 2019, we began to deploy some of the more basic protocols in DeFi.

The basic agreement mentioned here includes loan agreement and transaction agreement. The loan agreement is like Compound, AAVE, and China’s dForce (dForce is also a project we invested in, and it can also be traded on Binance now). The transaction agreement includes the simplest Things like Uniswap, Balancer, and Curve are used by more people.

Starting from April and May, we are looking for things on top of the basic protocol that will definitely be needed by many people, including, for example, decentralized perpetual contracts, and then may include some things like Alpha Homora is a special lending protocol that helps the giant whales of Ethereum to increase the income of Ethereum, and at the same time allows others to increase leverage to mine.

Then there are some agreements that help large investors to lock in a certain interest rate for a fixed period of time in the early stage to create guaranteed returns for their funds. Generally speaking, we invest in a little bit according to the stack.

I mentioned earlier that the first of the three major themes is Web3, and the other is open finance. Open finance means that we think there are two parts, one part is definitely not wrong with DeFi, but the other part, in fact, there is a very big and important transition period in the middle, especially the exchange platform currency, because we think that there are actually many People go from the real world of legal currency to the world of cryptocurrency, in fact, it needs an intermediate state.

The exchange token is a token with very clear value capture, and then allows many of these traders to enjoy the rights and interests of work tokens during the transaction process, which means that they work for themselves while trading. The exchange was also a relatively important part of our layout at that time.

3

MC Mandy: Thank you Mable. In addition to sharing the tracks I care about, I also analyzed why BNB can rise to such a high value support. In addition to investing in the track last year, we can also talk about Linguyu, which we will focus on this year and in the future. Like Mable, we also talked about it, such as DEX of derivatives. Boss Ling first?

Ling: Then I will speak according to our two different investment preferences and directions just now. From the perspective of strategic investment and mergers and acquisitions, we still focus on the entire core business of Binance, and expand our business through investment and mergers and acquisitions. We have observed the trend of institutional entry from the second half of last year to the first half of this year. It is getting stronger and stronger.

From the perspective of new business expansion, based on our judgment of the market and the trend of institutional entry, we will invest in and acquire institutional businesses next, and gradually build more and richer business-oriented products through investment and acquisition.

The second fiat currency deposit is still an important business line for us. Over the past year or so, we have gradually established fiat currency trading platforms in different countries and markets through this investment and acquisition, such as Indonesia, India, and Previously, there were corresponding programs in the Korean station and so on, which could allow local users to better seamlessly connect in fiat currency deposit and transaction experience. Next, how to provide users with more convenient fiat currency channels will still be the focus of our attention.

Judging from the track layout in the early stage of the industry, in fact, from the perspective of our entire investment field and scope, in fact, generally speaking, there has not been much change in the direction since our establishment in 2018. There are several directions that we may be more optimistic about and continue to invest in. Looking for good investment targets and teams.

The first one is the construction of the entire underlying public chain infrastructure. Although we have our own Binance Smart Chain, we have begun to hold a relatively open and positive attitude toward public chains in the industry that are developing rapidly and that we think have potential. Attitude, we will also carry out corresponding ecological layout. For example, we launched the Polkadot Ecological Fund before to support Polkadot’s ecological construction.

Second, DeFi will still be the focus of our investment from the past to the present in the next period of time. We also hope to try some areas where DeFi has not exploded on a large scale, such as South Korea.

The third is the NFT track. From NFT infrastructure construction to application. On the asset side, etc., we all want more layouts.

Fourth, and more importantly, we will put a lot of energy and focus on the ecological investment on the Binance Smart Chain. Since its launch in the second half of last year, the entire Binance Smart Chain has developed very rapidly, gradually catching up with or even surpassing Ethereum. Since its inception, we have funded about 39 projects, covering areas such as wallets, DeFi, NFT, games, communities, etc.

However, judging from the current investment pace and areas covered, it is far from enough. We still hope that through more early-stage financial support or investment methods, we can enable more developments in different tracks and fields. Investors or project parties choose to develop and build on the Binance Smart Chain.

From the above four aspects, it is likely that we will pay more attention to the industry-oriented investment ecology.

MC Mandy: Thank you for Ling's introduction and analysis. What are the directions that Mable is focusing on now?

Mable: Just now Ling actually mentioned several general directions that we are more optimistic about. I can expand it a little bit.

As I mentioned earlier, we will continue to pay more attention to some subdivisions like DeFi, including decentralized perpetual agreements and derivatives, and then fixed income and income tokenization agreements of this type.

From the perspective of NFT, I think NFT should not be discussed in general, just like you talk about homogeneous tokens but you don’t discuss it as a big category.

NFT, art is one kind, trendy games are another, including music and text like mirror and so on.

In fact, from our point of view, each unit creator ecology can help these creators capture the ecology through the token economy, and their early supporters can capture a series of dividends from this fan economy. For example, as an early For those who discover a creator, I may receive early support bonuses through token incentives.

Then there will be some virtual social networking, such as designing some possible virtual skins for some relatively strong IPs, including some virtual items. For some social networking through these things, this may also be our Think it would be more interesting.

Generally speaking, we will pay attention to the NFT track, but it may be less inclined to the NFT of the whole platform, because we feel that everything is sold on one platform now, which is a very embryonic stage, and the real market begins It must be subdivided when it develops, and this will be a direction we should look at more seriously.

We have some investments that have not been announced to the public, which are actually related to compliant stablecoins and so on. Because we believe that some traditional institutions are actually gradually entering this industry, and which stablecoins will get the best traffic and the best Internet ecological applications, then they are most likely to be used on a large scale, so This may also be a direction we are more optimistic about.

4

MC Mandy: Thanks Mable. Because I am also familiar with Mable and communicate more privately, I think Multicoin and Mable are really good at accurately capturing early projects. Some projects are good projects that can be seen at a glance because of their fundamentals, while others need time. Verification, when everyone finds out that it is a good project, it has increased tenfold and hundreds of times, and Multicoin is very good at finding such projects, and helping these projects realize their value through post-investment assistance.

Now that I’m done boasting, I invite Ling to also praise Mable. Since Binance chose Multicoin for the first time to invest in encrypted funds, there must be some unique reasons?

Ling: I want to tell a story behind it. I think there are actually some interesting points behind this cooperation, which I want to share with you. I think the first time we chatted with Mable was in that small coffee shop. Before that, we should have had a lot of intersection and cooperation with the entire Multicoin team. From the perspective of project cooperation, we actually think that Multicoin has always believed in high-standard and high-quality products. investment threshold.

Second, we were quite impressed with Multicoin in 2018. At that time, Multicoin had an in-depth analysis and research report on the entire BNB, and had a relatively sufficient understanding of Binance’s business and direction. So far, we all feel that the overall research and analysis capabilities of Multicoin are still relatively high in the industry.

The third one, which impressed us deeply, is that Multicoin will devote more energy to post-investment management and construction to help the project grow, and will spend a lot of time thinking about how to grow together and how to help them make a better ecological Much thought and design. This is very consistent with our investment philosophy and post-investment management methods and concepts from 2018 to now.

So when we met for the first time, we found out that we all have a lot of common investment ideas and directions. We hope that in the next investment cooperation, we can be closer.

The second one is that I find it interesting that DeFi was very popular around the beginning of last year. At that time, many centralized trading platforms had not really set foot in the field of DeFi, because at that time DeFi was still popular in a relatively small circle. , At that time, we also chatted and brainstormed with Mable. As a centralized platform, what can we do in the DeFi field.

Later, after gradual exchanges, Mable quickly gave us a few good ideas, and wrote them into a relatively complete document to discuss how we can cut in from the centralized trading platform.

Although the product we presented in the end was different from the original idea, it made us feel more interesting at that time, but the whole process of collision still left a deep impression on us.

So I think that after the cooperation and trust accumulated in the project since 2018, and we see the overall investment performance and results, we feel that we can have more in-depth cooperation in specific tracks and specific investment fields. We hope to take our cooperation to a higher level. This is why we chose Multicoin when we decided to invest in funds for the first time without investing in any funds in the past.

MC Mandy: Well, Boss Ling’s boast is very in place. He affirmed Multicoin’s all-round capabilities in terms of investment research ability, execution ability, anticipation ability and post-investment service. Let’s turn it around. Mable praised Binance and told us about the process of reaching a cooperation. If there are any details from your side, you can share with us.

Mable: Yes, what Ling said just now, I was very impressed, because there was a period of time last year when all exchanges were still trying to learn DeFi, and then we were actually looking at many projects at that time, just thinking about tokens Economy, including how you can make it easier for retail investors to participate in it, and then attract a lot of money and a series of gameplay.

At that time, Binance and the others were also there. Ling and several of her colleagues were thinking about how to let Binance participate in DeFi. The second is to adhere to the point they have been insisting on, how to deliver core value to BNB, so as to ensure that all These values ​​can be returned to BNB.

At that time, I wrote that article based on the various market cases we saw at that time. It was a matter of writing what I thought of, and I didn’t think of it as a thesis. This is our usual work habit. If you have any ideas, you may directly tell your partners. Although there may not be any results, I think this may have left some impression on Ling in the end. I think it is quite amazing.

At that time, this was entirely out of saying that BNB or Binance could do this from a better perspective, so I am also very grateful to Binance for noticing some of our efforts on this point, and I feel quite grateful.

Looking back to 2019, we wrote two articles on BNB at the beginning of 2019 and at the end of 2019. Like the first article, it may focus more on value capture than itself. Binance actually explored it for the first time at that time. When other exchanges did not try to explore the decentralized ecology, it was the Tendermint chain at that time, which was BinanceDEX. The title of the second article is "Binance is Blitzscaling", and this sentence still applies today.

I think Binance has been thinking and working on bringing a lot of value to BNB. In addition to value capture itself, it also expands between centralization and decentralization, recognizing a possible more decentralized future.

Therefore, Binance will not be limited to encircling users in its own exchange, and it is also possible to really explore some opportunities on the chain to make the ecological pie bigger, rather than wanting to maintain a centralized exchange. Closed ecology. So I think this point is actually very far-sighted and courageous, because to some extent, the decentralized ecology is actually a challenge to centralized exchanges.

I think it is good to cooperate with such an exchange with products and courage.

Ling: I think Mable knows a lot about us and Binance and BNB just now. I would like to add that we are designing many products including in the process of business development. In fact, just now Mable mentioned how to return value to BNB , which is the embodiment of the result.

From the starting point, how to make BNB users get a corresponding sense of participation or corresponding benefits? This is what I think we are doing today, whether it is products, investment or the design of platforms and products such as Launchpad and Launchpool. , Let BNB holders enjoy the dividends brought about by platform growth and business growth is our starting point.

MC Mandy: Thank you for sharing the sympathy of the two. I can feel that Binance and Multicoin are highly compatible and consistent in terms of investment philosophy, focus on the track, and comprehensive judgment on the industry.

In fact, this news was announced yesterday, and I saw that many people shared it in the circle of friends. You may be more concerned about whether the projects invested by Multicoin will have more linkages with Binance after the cooperation, and often pay attention to the investment in the BSC ecology. Including how Binance may empower Multicoin. Next, I would like to ask the two bosses to talk about possible further cooperation and deeper cooperation after the investment. We are from Mable.

Mable: The small example that Ling just mentioned is actually one of our past exchanges. Before that, we had a special discussion on product ideas. I think it is very good. As a user, whether it is a retail or an institutional user, Some suggestions may be made, including that we may not only look at the Ethereum ecology, but also look at other public chains and other DeFi practices. From the perspective of an outsider, we will be able to make some suggestions for products.

Whether it’s Binance’s own products or BSC’s, I think this is actually a process of joint exploration and progress. Because there are some potentially good ideas, and we are willing to participate together, which is good.

Another point is that we found some very early projects in the early days and jointly supported them. There may be some projects that we invested in ourselves, and we will also recommend them to Binance, and vice versa. The ecology of BSC is relatively good, and some even did it on BSC instead of Ethereum at the beginning, because the gas of Ethereum is really high, and a single transaction is 50 to 100 dollars.

Many projects can’t afford Ethereum on the mainnet. In fact, some of these projects are made by good developers. In this case, we will definitely be willing to try. So I think from the perspective of product design and investment and then jointly building an ecology, we will cooperate.

Ling: Just kidding, because before we invested, we would go to Mable to talk to Mable when we encountered any interesting ideas or some directions. After we started investing, we also made an appointment for a call every two weeks. I feel that it is justifiable to harass .

I think there are a few points that we have been discussing before. I just mentioned that after the investment in Multicoin, a lot of time and energy will be devoted to the blessing of different projects and ecological construction. We hope to have more in-depth cooperation with Multicoin on the Binance Smart Chain in the future, regardless of the positioning of the entire track Either distinguish or look for early good investment projects.

Then we hope to jointly support and truly launch some projects on BSC that are comparable to and compete with large public chains. This is on the Binance Smart Chain, which has a deeper cooperation with Multicoin in the ecological construction of the chain.

Second, we hope to have more contacts and voices in the developer community. I think we have spent a lot of time in this area from the past until today. In 2019, Binance also established a new department called BinanceX, aimed at the developer community, and has sponsored and funded many developer activities this year.

So we are still looking for talents, hoping to attract many hard-core developers around the world to do more constructive or meaningful explorations, and hope that they can choose Binance Smart Chain for development and applications. In this regard, Multicoin has actually done a better job, especially in overseas developer communities, so we also hope to have more in-depth cooperation with Mable or Multicoin as a whole in the future.

5

MC Mandy: Thank you boss Ling for sharing. Because the two of you both talked about BSC just now, Binance Smart Chain must be the most important strategic layout of Binance this year. It is very comprehensive, everyone can pay attention to it.

From the traffic portal and tools on the BSC, to DEX and aggregators, and the 15 projects that have recently received Grant, we have carefully analyzed them. We think these are wealth codes, and we will share them with readers and friends. So next, I mainly want to hear from the two of you about the future development of BSC and what kind of strategic layout you will make? Mable.

Mable: According to what I just said, some of them are not from BSC, but some projects I knew before. It is too expensive to deploy Ethereum, and then I seriously discussed it with me. Is it right now? You can use BSC, because BSC is what can be used now, because many L2 projects have not yet come out, or cannot be put into production yet.

Secondly, in addition to being able to use this point, these developers will also feel that if they do well on BSC, there will be relatively concentrated resources and support, which is also beyond the reach of ordinary L2, and everyone will pay attention to it. So many projects are not on BSC from the beginning, but as time develops, these developers realize the value of BSC and want to choose BSC. In fact, many of them are the types I mentioned earlier, which may be more complicated. Inside the DeFi protocol.

Perhaps more importantly, I think some projects that bring liquidity to NFT are also good on BSC. Of course, I will continue to communicate with Binance.

MC Mandy: Okay, let me ask again. Our community has collected some questions in the early stage, and everyone is more concerned. Because the king of the public chain is definitely Ethereum, and now some projects on BSC are also migrated from the Ethereum ecology. Come on, what is the relationship between BSC and Ethereum?

Mable: I think from two points of view, one is the developer and the other is the user. I mentioned a metaphor in my blog before that I think is more similar, that is, the relationship between Kusama and Polkadot is actually a bit like the relationship between BSC and Ethereum.

Many people think that Kusama is a test chain, but it is not. It also has a main network. Many people cannot afford the card slot on Polkadot, and some lightweight applications will choose to deploy on Kusama. From the perspective of the developer I just mentioned, I have to try and make mistakes now, and I want to deploy it on the BSC to see if there is a fit between the market and the product. This is an idea.

Because many BSC users are not existing Ethereum users, many of them come from Turkey, Russia, Vietnam, Indonesia, etc., and they may have no experience in DeFi before. These people can actually experience what the various protocols of DeFi are like in a relatively cheap place at a low cost. I think this is another aspect.

MC Mandy: Thank you Mable, let’s ask Ling to talk about BSC’s role in the entire public chain ecosystem or DeFi ecosystem. What is the final vision of BSC’s future?

Ling: I think from the overall macro perspective, most users today think that we are an exchange when they know Binance, but if you look carefully at the entire official website, you will find that Binance has actually positioned itself from the first day. It is the builder and provider of the infrastructure of the blockchain world.

So based on this, I think building a good trading platform is the first step, and then gradually make more decentralized attempts on this basis, so Binance Smart Chain is our way to a more decentralized It is a very important link in this road of globalization.

Second, from the perspective of the relationship between BSC and Ethereum today, in fact, I don't agree that BSC may be a test field for many people as a relatively easy trial and error. I think from today's point of view, no matter in terms of performance or the overall support of the ecological support, why are more and more developers willing to come to BSC now, many of them are not for the purpose of trial and error.

The Ethereum we see today does have its development bottlenecks, including fee rates, performance, etc., which are actually quite inconvenient for developers. This is why we aimed at the existing public chain when we launched the public chain. The bottleneck has been improved accordingly, hoping to provide developers with a more favorable or convenient environment to support the development of their entire decentralized applications.

Third, from our point of view, we feel that BSC and Ethereum are often compared by people on Twitter. In the long run, competition is always a good thing. For the entire ecology, competition means that there will be gradual progress. There are better and more public chains or more and better improvements for developers.

From another perspective, in fact, even if we are competing with Ethereum today, we still give Ethereum a lot of support and recognition on the trading platform, and it will not affect our other products and business lines for Ethereum. recognized.

6

MC Mandy: Okay, thank you for Ling's introduction. I think what Mable said is that at this stage, for developers and users, BSC is a lower threshold, more efficient and affordable choice.

We just talked more about strategy and industry. Next, let’s talk about some issues that ordinary investors are particularly concerned about. The most concerned thing must be the market. Because we are definitely still in a bull market now, and it is not for the two of you to predict specific prices. From the perspective of trends, let’s talk about what kind of views you hold on the next trend of the market, Mable.

Mable: A very clear bull market. I think the entire market is now highly linked with the overall assets and various securities markets, and this may have started from March 12 last year. On 3.12 last year, all assets fell in a risky panic, but since then, they have been releasing water.

In fact, there are a lot of money from institutions whose original intention is to buy bitcoins to fight inflation. After this money flows in, it may further penetrate into this industry, so there will be more and more exchanges with the US stock market or Overall macro market linkage.

Based on this, the global release of water, including Powell's speech some time ago, confirmed this tone, and he avoided the fact that the rise of Bitcoin is largely the premise of global release of water. I believe that everyone does not have much doubts about this. This is the background of the big macro.

Due to such a macro background, various institutions and even some monetary funds around the world may want to obtain some anti-inflation properties of Bitcoin or related digital currencies, and buy their assets, virtual assets, from this point of view. A lot of money is coming in. Some institutions have no way to buy Bitcoin directly, they will buy trusts, corporate bonds, etc.

On the whole, the bull market we are seeing now may not be a retail bull like in 2017, but an obvious institutional bull. So I think at least in the case of no increase in short-term interest rates, there are indeed obvious benefits. I think that as long as the money comes in, after it enters Bitcoin, it will continue to penetrate into other currencies, and it is only a matter of percentage.

In the longer term, assuming that there is a certain bubble bursting, it will still be good for Bitcoin. This goes a long way. The US dollar value system is being challenged, so in fact, it is also good for Bitcoin and the industry in the long run. I am very confident.

MC Mandy: Thank you Mable, I am also very confident. When Powell spoke a few days ago, as the media, we must go to follow the content. I found that all the comments on the screen in the live broadcast room are people in the currency circle, who are most concerned about the macro economy in the world. It's us who speculate in coins, and everyone below is talking about bitcoin, haha. What does Boss Ling think?

Ling: First of all, I very much agree with Mable’s impact on the macro economy on this industry. From my personal point of view, I believe that the market is cyclical. If we look at the past historical data, when Bitcoin first cut production, It was about 13 months from when its price reached what we call a high.

It took about 14 or 15 months for the second production reduction to Bitcoin, for example, to reach the second high point. We can see from this round, after this production cut, that the price has climbed to the high point of the whole price, and it has only been more than eight months so far.

So from the perspective of the cycle, if we follow the laws of history, then in fact, for this good market situation, this bull market, I think there is still a long period of time, from the perspective of the cycle.

Second, compared with the previous bull market in 2017, the point is that both practitioners and investors in the entire industry tend to be more rational. Like the bull market after 2017, you will find that there are many entrepreneurs Influx into this industry, but it will be found that there are very few projects that have actually landed in 2018 and 2019.

In 2020 and 2021 this year, you will see that some public chains and applications in the past are gradually landing, and there will be more scientific and rational token design models. In terms of scenarios, I think the current working environment of the entire industry is more rational.

Third, I think more rational investors are beginning to enter this industry, not just institutions, more institutions are beginning to enter the market, but it is brought about by the beginning of institutions entering the market, more such as individual investors, Because more professional institutions or larger companies are gradually buying Bitcoin or through various methods, participating in the investment of the entire industry will bring more and more rational investors to pay attention to this industry.

So I think in general, no matter what happens next, I am still relatively optimistic about the development of the entire industry in the long run.

7

MC Mandy: Well, both bigwigs have the same judgment. No one can predict the price in the short term, but in the long run, Bitcoin still has a lot of room to rise. I remind everyone not to use leverage at will, although there will definitely be a decline And fluctuations, but as Mable said, it no longer has the fundamentals of stepping on the bottom like 312.

The last question, what do you think the market size of DeFi will be in one year or three years, will it truly become mainstream, or will it be noticed by more traditional financial practitioners or institutions?

Mable: I think from several points of view, for institutions to enter the market, the core is asset security. In fact, apart from these agreements themselves, in fact, smart contracts must have loopholes as long as money is in them. There is no way around this, so Now there will be some. Everyone doesn’t like CeFi, but there is no way to avoid it. Sometimes a white label is needed to allow centralization to enter this market.

The second is the special custody like Fireblocks, which provides some channels for institutions to interact with on-chain protocols in a relatively safe way. I think this is prepared from the perspective of infrastructure.

MC Mandy: When will the market size or the so-called mainstream come?

Mable: In terms of market size, I think it should be at least several times the current size. A very important point, everyone is now encapsulating Bitcoin on Ethereum. As the cross-chain matures, more cross-chain assets will be printed. The above There are more and more collaterals, so I think it will be several times higher than the market value at the highest point of the entire market afterwards. It sounds a bit exaggerated, but I think it is.

MC Mandy: I ​​don't think it's an exaggeration. After all, DeFi has grown rapidly in the past 1 to 2 years, both in terms of lock-up volume and transaction volume. It is conservative to say that it is several times.

Ling: Let me answer the topic of DeFi just mentioned. If we look at cryptocurrencies and the DeFi mining that we participate in today, the absolute value is still very small today. From our point of view, how to lower the threshold for entering DeFi, so that today’s global retail investors can enter in large numbers, this is not a large number More mainstream.

Second, I think DeFi is not the final form. DeFi is a process and a path. The connection and combination of DeFi and other fields may gradually create the final result of productization and commercialization. Judging from today, there have been many attempts and explorations in different forms, such as DeFi+NFT, DeFi+insurance, DeFi+blockchain games, etc., all of which are gradually the final product form of DeFi.

From today's point of view, Defi is still a path, which is still gradually evolving. This is what I think there are more reasonable or innovative designs, and the entire energy and user participation will be an order of magnitude larger than today's.

MC Mandy: Well, that's all for today's question. Welcome everyone to continue to look for wealth opportunities on Binance. You can also follow the various new assets and new gameplays launched by Binance on Odaily, and follow Mable’s Twitter, Weibo and podcasts.

Ling: Goodbye.

Mable: Thank you Mandy, thank you Ling, bye.

"Disclaimer: The opinions of the guests in this article do not represent Binance's "Block 101" position, and do not constitute investment advice, please treat with caution."