Event Overview: Hong Kong Crypto Finance Forum
On April 8, during the Hong Kong Crypto Finance Forum, He Yi, co-founder of Binance, engaged in an online fireside chat with Vito, the founder of MetaEra. The discussion revolved around Binance’s growth trajectory and emerging trends within the crypto finance sector. He Yi began by explaining her increased activity on social media, emphasizing the importance of founders being attuned to user feedback and industry dynamics. She underscored that the focus of product development, community engagement, and compliance should always circle back to one fundamental question: “Are we addressing real user needs?” In her remarks, she highlighted the significance of pragmatically meeting market demands rather than merely pursuing trendy concepts, asserting that a viable business model and a customer base willing to pay are crucial for the sustainability of any Web3 initiative.
Opening Remarks
Vito: Greetings, everyone, and welcome to our fireside chat. We are privileged to have Ms. He Yi, the co-founder of Binance, joining us to explore “New Trends in Crypto Finance from the Development of Binance.”
Exploring Social Media Engagement
Vito: This year, particularly following the Lunar New Year, there’s been a noticeable shift; Sister Yi has become quite active on X (Twitter), which contrasts sharply with her previous online presence, prompting some to wonder if someone else might be managing her account. Can you explain what changes have prompted this increase in visibility?
He Yi: Long-time Binance users might remember that I have often referred to myself as the “Chief Customer Service Officer.” Since 2017, I have actively engaged with users on platforms like WeChat and Weibo, which has allowed me to identify product challenges and user expectations more effectively. The “Founder Model” is gaining traction in Silicon Valley, where founders are expected to be engaged. We have embraced that from the beginning. However, my temporary retreat from Chinese social media was due to Weibo’s restrictions. Meanwhile, with CZ’s reduced presence online, we noticed a disconnect in communication with our Chinese community, which is why I’ve returned to the social media landscape. I constantly remind our management team that our commitment lies with two primary groups: our users and our employees. It’s essential for external users to feel heard, while internal teams should feel supported. As leaders, we must foster a culture where employees are motivated to proudly state, “I am at Binance.” The essence of Binance can be boiled down to three core principles: creating quality products, serving users and employees effectively, and maintaining open lines of communication with regulators. These aspects constitute our competitive edge.
Evaluating High-Frequency Interactions
Vito: Thank you for sharing those insights, Sister Yi. Following up on that, what tangible benefits have these frequent interactions yielded? Have you encountered any new challenges, and do you plan to sustain this level of engagement going forward?
He Yi: I certainly aspire to “replicate” my engagement style among more employees and executives, enabling them to adopt the “Chief Customer Service Officer” mindset. If they can outperform me, I could step back from the forefront. However, in today’s Web3 landscape, information sharing has transformed from “one-way” to “multi-directional,” with everyone acting as an information node. This can lead to information overload; while most data may be irrelevant, that tiny fraction containing valuable insights is critical. Moreover, as everyone becomes a Key Opinion Leader (KOL), the spread of information can often become skewed or devolve into misinformation. Such distortions may be trivial, yet addressing each one is impractical. Therefore, having strong resolve and a clear sense of purpose is essential. One must maintain a strong identity and direction amid inevitable negative feedback, as this is a challenge every mature founder must confront.
Strategic Logic behind Developments
Vito: You mentioned initiatives like the “Sunshine” wallet airdrop and the launch of Alpha 2.0 on-chain. Is there a cohesive strategic rationale driving these actions? What objectives are you aiming to achieve?
He Yi: It’s important to recognize that Binance’s wallet has certain shortcomings when compared to leading industry wallets. When product performance is lacking, we must enhance other areas to keep users engaged and patient as we improve. Ultimately, any product’s development must be user-centric. While many differentiate between wallets and exchanges, users have often blended these functionalities. If a wallet serves merely as a storage solution, why do on-chain wallet users engage in trading, while exchanges struggle to offer the same? Personally, I am not a frequent trader; I use my exchange account as a wallet. Currently, many on-chain wallets facilitate trades without stringent Know Your Customer (KYC) or anti-money laundering checks, while centralized exchanges face higher compliance standards and can only offer a limited selection of coins. The debate is not about which option is superior, but rather about the choices influenced by regulatory frameworks. Binance Wallet’s cautious approach stems from past losses; we cannot afford compliance errors again. This is a matter of responsibility, not ignorance.
Adapting to Industry Shifts
Vito: Therefore, Binance’s series of adjustments appears to be a response to evolving industry trends. What fundamental changes do you perceive in the broader cryptocurrency sector?
He Yi: The industry is undoubtedly transforming. In the past, cryptocurrency was largely a niche for tech enthusiasts and idealists. Today, however, even traditional financial systems, such as the U.S. government, are beginning to embrace it. This shift occurs because once technology proves its value and enhances efficiency, it becomes integrated into mainstream practices. Crypto ETFs exemplify the convergence of traditional finance and the crypto arena. Additionally, regulatory clarity is improving, with more jurisdictions implementing specific frameworks. Furthermore, the crypto sector has progressed from focusing predominantly on public chains and exchanges to developing a wider application layer, including stablecoin cross-border payments, DeFi, and decentralized physical infrastructure networks (DePIN), which possess tangible utility. This evolution mirrors Silicon Valley’s transition from the counterculture of the 1960s to a key technological force today. Similarly, while Web3 began as a rebellious movement, it is on a path toward maturity and public service.
Prioritizing User Needs Over Trends
Vito: What are your thoughts on the various emerging sectors—DeFi, Real World Assets (RWA), DePIN, and others? Which direction do you prefer?
He Yi: Instead of asking which sector I favor, it is more critical to consider what problem you are addressing. Is there a market willing to pay for your product? Numerous Web3 startups struggle to establish a viable business model; their concepts may sound impressive yet remain obscure to users, leading them to merely ride the wave of hype before being listed on exchanges. This is not a sustainable approach. We must resist the urge to chase trends. Who is your target audience? How extensive is your user base? Is there a genuine demand for your offering? These are the pertinent questions. I also take issue with the stark “Web2 versus Web3” labels. Human nature remains constant, and business principles are universal. Regardless of the technology utilized, those who create genuinely beneficial products and invest back into the community deserve respect. Successful enterprises typically share key characteristics: they are timely, strategically positioned, possess a competent team, and demonstrate exceptional resilience. Successful companies like Nvidia, Tesla, and even Binance often endure significant challenges, yet their ability to persist longer than competitors is what allows them to thrive.
Closing Thoughts
Vito: Thank you, Sister Yi, for your insightful contributions today! Although time is limited, the discussion has been incredibly enriching. For those interested in following Sister Yi’s updates, feel free to connect with her on Twitter and continue to engage with MetaEra. Thank you once again, Sister Yi, and thank you to all who participated!
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