"In prison, all external possessions are gone; what I miss the most is not work, but family and friends."

Written by: Anderson Sima, Executive Editor of Foresight News

TL;DR

Abu Dhabi Strategic Investment:

• Binance chose Abu Dhabi for its regulatory framework and strategic positioning, rather than funding needs. The UAE's compliance environment provides a key support point for Binance's global development.

Meme Coin Ecosystem:

• Meme coins reflect community creativity but have significant high-risk attributes.
• Binance supports innovation but needs to balance user education and risk warnings.
• Trump Coin: Most celebrity tokens are third-party hype actions; public figures should focus on long-term value projects.

Binance Listing Strategy:

• Binance cannot become a place where big players exploit retail investors; it is not advisable for exchanges to act as "selectors," and decentralized exchanges (DEX) are expected to become mainstream in the future.
• It is recommended that project teams publicly disclose their lock-up mechanisms and use third-party smart contracts to enhance transparency.

Industry Development:

• From "issuing coins requires building chains" to the ERC-20 standard, the technical threshold has lowered, but the core logic remains unchanged (community consensus equals value).
• The industry needs to break through financial speculation and explore practical applications like government identity verification and DeSci (Decentralized Science).

Ethereum and L2:

• Missed the opportunity to invest in Ethereum but affirm its foundational role in DeFi.
• The current bottleneck for Ethereum is insufficient innovation at the application layer, not a technical issue.

Prison Experience:

• Four months of imprisonment reshaped life priorities, realizing the importance of family and health.
• Lost 6 kilograms but became healthier; mental stress stemmed from uncertainty.

Educational Project Giggle Academic:

• Aims to address global educational inequality through gamified learning, cultivating skills that enhance employability (such as AI data labeling).

Future Layout:

• Investment direction: Focus on three major areas: Web3 infrastructure, AI, and DeSci (Decentralized Science).
• Vision: Support a thousand entrepreneurs, create sustainable unicorn projects, and reshape the industry landscape.

In 2013, a 36-year-old entrepreneur came to Las Vegas, where he met a 19-year-old young man. Despite their age difference, unlike the gamblers seeking thrills and wealth, the older man saw a pure geek spirit in the eyes of the 19-year-old, and he knew he was in the right place.

A month later, he sold his house in Shanghai and used all the proceeds to buy Bitcoin, an action that drew confusion and opposition from those around him. Shortly after, Bitcoin's price began to plummet, while housing prices in Shanghai soared, making his actions seem foolish at the time.

However, he became good friends with the unassuming young man, who lived like a backpacker and even stayed at his home, sharing a bunk bed with his son, teaching him what a "smart contract" was. It was from that moment that their fates began to change dramatically.

Later, that young man founded a blockchain network worth over $200 billion—Ethereum. And he founded the world's largest cryptocurrency exchange—Binance. The names of these two protagonists are Vitalik and Changpeng Zhao.

Changpeng Zhao carries many labels and identities; people prefer to call him CZ. As the founder and largest shareholder of Binance, he was once named "the richest Chinese" by Chinese media, a title he denied. In the crypto community, he was the first crypto KOL to surpass 10 million Twitter followers, and those young people who love memes affectionately call him "Big Brother." Like many crazy entrepreneurs, his life has not been smooth sailing. In 2024, he spent a long four months in a U.S. prison, marking his darkest moment.

Recently, Foresight News had a conversation with one of the most important figures in the crypto field. He told Foresight News that before the interview, he was discussing biotechnology with Vitalik. Twelve years have passed, and their lives have changed dramatically, but the natural connection between humans seems to have never changed.

Here is the edited full content:

Binance Founder Changpeng Zhao

Foresight News: Recently, the Abu Dhabi investment institution MGX (established in 2024, closely related to the Abu Dhabi government and royal family) invested $2 billion in Binance, marking the largest single financing in the crypto field to date. Why did Binance choose to establish a strategic partnership with an investment institution in Abu Dhabi?

Changpeng Zhao: Yes, this is a strategic investment. In fact, Binance does not lack money; our growth has never been constrained by funding.

When accepting such investments, we certainly consider strategic assistance. Currently, Abu Dhabi, located in the UAE, has significant strategic importance in terms of compliance regulations and government support in the entire digital currency industry. Other state-owned funds or investment institutions have approached us, but we generally only choose partners with strategic significance.

Foresight News: You have been very active on X recently, which is different from your image in the previous cycle. Regarding meme coins, crypto leaders in the community have varying opinions; what is your view on the meme trend?

Changpeng Zhao: There are a few points here. I have been quite interactive on the X platform, but previously I interacted less with the meme coin community. In 2024, I was dealing with U.S. related matters and paid less attention to the entire industry, and I also had four months without internet while I was in prison.

So during that time, my community interaction was indeed less, but I had been very active before that, and I personally enjoy communicating and learning from the community. Recently, I interacted with the meme coin community to understand what the meme coin ecosystem is really like. I have never bought meme coins or participated in "shitcoin" projects, so I wanted to learn through interaction and questions.

They asked me if I had pets, and I guessed that someone might want to use a pet's name to issue a coin. I don't oppose this, so I shared my dog's name, and as a result, people really issued coins based on that, even forming a pet battle (PVP) project. I had never encountered such things before, but after observing in the community, I found it quite interesting. Later, everyone asked me to choose which coin was real because several meme coins had the same name and significant market caps. But I didn't want to do that because the meme coins involved had many users, and choosing one would definitely hurt the feelings of other users, so I didn't participate.

If new and interesting projects emerge, I'm open to interacting with them. Besides having bought one BNB TST and Mubarak, I haven't bought other meme coins. Interacting with the community is a learning process for me, and everyone can see that I am learning. I find the meme coin ecosystem quite interesting, and I now have some understanding of it.

Foresight News: Now, the interactions on Web3 chains, such as those related to meme coins, how have the trading and user experiences changed compared to when you first encountered the Bitcoin white paper?

Changpeng Zhao: There are both commonalities and changes. Early enthusiasts in the digital currency industry revered freedom and decentralization. After Bitcoin emerged, to issue new coins, one had to create a new chain, and the code needed to be tens of thousands of lines long, as was the case with Ethereum and China's NEO (which later lost popularity).

Later, Ethereum introduced the ERC20 standard, allowing coin issuance without developing a new chain; one just needed to write a smart contract. Thus, in 2017, a wave of ICO projects emerged, where at least a 10-page white paper and a website were still required.

Now it’s simpler; you can create a project just by posting an image. The barriers to issuing coins are getting lower, the community size is growing, and the amount of funding is increasing. But the core logic remains that as long as someone recognizes a concept and participates, it has a price; if no one participates, it has no price.

Of course, many projects are genuinely working on products and platforms. The current meme coin culture is quite unique and novel, and its rise has several factors.

First, there is some dissatisfaction with the traditional VC model, where traditional VCs invest in projects early and then exit after the listing, leaving retail investors to take over. Moreover, the previous U.S. government and the SEC believed that many coins had securities attributes, while meme coins claim they have no real use, just for fun, thus avoiding potential legal disputes.

Additionally, many small retail investors have the mindset of wanting to use a small amount of money, say $100 to $2000, to multiply it tenfold or a hundredfold to change their lives. Combining these factors, meme coins have become popular. I think meme coins are very risky, with significant price volatility, but the advantage is that they are relatively open and transparent. How long they can last, I am uncertain; since the community is very active, we support it. My thought process has always been to see the direction of the community and then support it, while we will also continue to support those entrepreneurs and platforms that truly have business models, revenue, and users. Although the form has changed, the core concepts of the industry have not changed much over the years.

Foresight News: The issuance of meme coins has even involved Trump, who is the first president in human history to issue a meme coin. What do you think about the president issuing coins?

Changpeng Zhao: From what I understand, this Trump coin may not have been issued directly by Trump himself; he has little actual connection to the issuance. It may have been issued by a third party using his name, and while he may have given some degree of tacit approval, I am not clear on the specifics of his involvement or profit connection; I have heard it is minimal.

I think subsequent coin issuances by figures like Melania and Milley could potentially be exploited by others. If they claim to issue coins themselves, that’s one thing, but if others use their names to help promote and publicize, they may not fully understand the industry and could be taken advantage of.

For influential figures, I believe they should be cautious when issuing coins. The coins they issue should have long-term value, long-term application scenarios, and bring long-term benefits. Many athletes and celebrities, especially retired ones, want to make a quick profit from this, which is understandable, but I think it’s not ideal. For those still active influential figures, they should focus more on issuing tokens with long-term utility.

Foresight News: As the world's largest crypto trading platform, listing coins has always been a headache for Binance. What is your view on the listing issues of VC coins and meme coins?

Changpeng Zhao: Regarding the listing of VC coins and meme coins, from my perspective, as exchanges grow larger, listing becomes a complex issue. As a shareholder of Binance, I most hope that Binance does not become a place where big players exploit retail investors, as this is detrimental to Binance users, Binance itself, and the entire industry.

However, if we go to the other extreme and allow small market cap coins to list too early, that is also not good. For example, if a coin has a market cap of only $5 million, and Binance now has 250 million users, if everyone buys a little, the price may be driven up very high, and then without support, it will drop again, creating a "spike" market, which is also not acceptable.

So it's best to find a balance in the middle, trying to list coins earlier, but the tokens need to have sufficient market value to avoid price spikes, and the holders should be diversified, not controlled by a few VCs or large holders. Additionally, whether it's VCs or large holders, it's best to implement lock-up mechanisms, with a long lock-up period, and I recommend using third-party lock-up solutions rather than having the project team control the smart contracts. We recently invested in a company called Sign, which is a third-party lock-up solution controlled by smart contracts.

Of course, if the project founders are very capable, have a high user base, and are unwilling to adopt this model, we also need to weigh the options.

Listing coins is indeed very complex. I do not participate in Binance's coin listing decisions, but I think some of their recent actions are quite interesting. In fact, I wrote in my blog before that the concept of coin listing should not exist. A platform with a large number of users should allow users to buy any coin in the blockchain world, whether on-chain or off-chain, letting users choose for themselves rather than having the platform filter them. I believe this is the right direction; the blockchain industry should not have intermediaries making decisions for users; the platform only needs to provide access services. I said many years ago that decentralized exchanges will be larger than centralized exchanges in the future, and I believe this will definitely happen.

Foresight News: As the largest shareholder of Binance, do you still believe that decentralized exchanges will be more important than centralized exchanges in the future?

Changpeng Zhao: I still believe that.

Foresight News: You recently disclosed your investment portfolio on Binance Square, where BNB accounts for 98.5%, BTC accounts for 1.32%, and the remaining 0.17% is a token a early payment project airdropped to you. You have never held Ethereum; what is your holding philosophy? Why no other tokens?

Changpeng Zhao: Binance Square shows my personal wallet. In fact, at different times, we have had a little Ethereum, but it never reached the level of investment. BNB was originally issued based on the Ethereum ERC standard, so we definitely use Ethereum.

But from my personal perspective, I completely missed the investment opportunity in Ethereum. I met Vitalik (the founder of Ethereum) back in 2013 when the industry was very small. We met multiple times in 2014 and attended exhibitions together.

In 2015, he came to Shanghai and originally wanted to stay at my house, but since my place was small, I arranged for him to stay at a friend's house; later, he went to Japan and stayed at my home, sharing a bunk bed with my son and teaching him some blockchain-related knowledge.

By 2015, Ethereum was basically taking shape. When he told me about the project, I even questioned it, thinking it would be difficult to implement such complex functions on the blockchain using a Turing-complete language, so I never invested. Later, Ethereum surged thousands of times, and I indeed missed an opportunity.

However, I have always had a good relationship with Vitalik; just this morning, I was discussing investment opportunities in the biomedical field with him.

Although I did not invest in Ethereum, I believe Ethereum has made significant contributions to the industry. It was Ethereum that led to the ERC20 standard and a series of subsequent projects. It is now the second-largest coin by market cap, and although there are some current issues, such as network congestion and slow processing speeds, which many people complain about, Vitalik is still very young and has a lot of room for growth in the future.

Foresight News: What is your view on the current state and future of Ethereum? Is Ethereum now entering a development bottleneck?

Changpeng Zhao: It's hard for me to evaluate exactly how Ethereum is doing. Vitalik is a genius, and his personality is quite different from mine; he doesn't like social interactions and is more focused on technical research. Perhaps because he is young, he has been criticized many times online, so he doesn't pay much attention to external evaluations.

I think many L2 and L1 solutions are not very different right now. Our research has found that at this stage, whether it's L1 or L2, the differences are not very obvious. Currently, apart from Bitcoin, the capacity of other chains has not been saturated; there is still enough space to accommodate more transaction volume.

What is currently lacking is on-chain applications; the transfer function is basically mature, while various practical applications are relatively scarce. I encourage everyone to develop on-chain applications. BNB Chain and Yzi Labs are very supportive of developing applications, such as social media, AI, biomedical data collection, and using blockchain for government identity verification in various scenarios.

Foresight News: Since the birth of blockchain, most out-of-the-box innovations have been related to finance, such as ICOs and DeFi. Besides finance and making money, what direction do you think this industry should develop in?

Changpeng Zhao: In my view, the development of the industry can be divided into two main areas. One is finance-related, including transfers, investments, ICOs, DeFi, etc. The other area is currently underdeveloped, but I believe it has more potential than the financial sector. Since the birth of Bitcoin, there has been a concept that anything requiring notarization should be placed on the blockchain; it just wasn't strongly demanded before, and relevant applications were not developed. Now, starting from the U.S., figures like Musk have proposed using blockchain to improve government efficiency. I have recently interacted with many governments, and they have similar ideas, such as the UAE government. To realize these ideas, decentralized on-chain identity verification (DID) may be needed first. With this identity, it can be applied in scenarios such as opening bank accounts, applying for visas, immigration, property registration, medical treatment, diploma verification, government procurement, securities investment, and real estate investment.

Although we are still in the experimental stage, I see many more attempts than before. Just like when the internet first emerged, video conferencing technology developed for a long time before it gradually matured. Blockchain technology is similar; although it is uncertain when these applications will fully develop, I see many people working hard, and Yzi Labs is also involved in many such projects, and we are investing heavily in this area.

Foresight News: You spent a lot of energy last year researching DeSci. What is your view on the development of such projects? Is it meaningful to raise funds for them using blockchain, or is it just a short-term trend like meme coins?

Changpeng Zhao: These types of projects (projects combining scientific research and blockchain) definitely have long-term significance; they are completely different from meme coins. DeSci projects have very long development cycles, such as researching treatments for cancer or hair growth, which take a long time.

Currently, global pharmaceutical research funding is basically controlled by a few large pharmaceutical companies, whose starting point is more about pursuing profits rather than curing all diseases. For example, if a scientist discovers a low-cost method to cure all cancers, large pharmaceutical companies may be unwilling to promote it because it would affect their existing massive supply chains and huge profits.

However, many scientists and medical researchers lack funding during their university or personal research and cannot establish decent laboratories for experiments. The funding they need may not be much, around $100,000 to $500,000, and the annual costs are similar. Blockchain financing is relatively easy, and there are many people worldwide willing to invest in these scientists. Through blockchain smart contracts, funding usage can be restricted, such as only allowing $100,000 to $200,000 to be withdrawn each year, and funds will only be released after the project reaches certain milestones and is approved by community voting.

If scientists do not continue their research, they will not receive subsequent funding. Once the project is successfully developed and has patents and income, it should also give back to the investors.

It's just that the project cycle is long, while investors in the digital currency industry generally have shorter attention spans. Meme coins are very popular, and such projects are often overlooked. But in the long run, these projects contribute significantly to humanity and society, and I believe they will definitely develop in the future, though the specific timing is uncertain.

Foresight News: You have initiated an educational project called "Giggle Academic." This project seems unrelated to cryptocurrency or finance; why are you trying to venture into education? I even wonder if this is related to your family background?

Changpeng Zhao: It's hard to say whether my family background has an influence; there is certainly some subconscious effect. I believe education is extremely important. Last year, when I had little to do in the U.S., I thought about what could create the most positive impact and maximize the value of my time.

After thinking it over, I concluded that education might be the most worthwhile field to invest in from a long-term perspective. Not from a profit-making angle, but considering the positive impact. The current education system has many problems; textbooks have not been updated for twenty or thirty years, and classroom education has significant limitations. Classroom education is averaged for twenty or thirty children; if a child excels in math but struggles in English, they may be asked to reduce their math study time and spend more time learning English, resulting in students who are all at an average level.

However, the future world is an era of global competition. For example, programmers now use AI to write code; you must be better than a hundred million others, leveraging your strengths rather than pursuing average development. Moreover, approximately 1.2 to 1.3 billion people globally cannot attend school, of which 700 to 800 million are adults, two-thirds of whom are women who are illiterate, and there are also 300 to 500 million children not in school. Solving these problems through building schools is very inefficient.

With our current technological level, we can completely utilize gamification to create an educational platform using mobile phones and iPads (Android tablets are also very cheap), allowing children to learn while playing games. I formed a team; it started with just three to five people, and now there are about 30. We have developed thirty to forty courses that are highly gamified, and children become immersed in learning letters, colors, new words, and other knowledge as soon as they engage with them, which everyone enjoys.

I calculated that creating a first-grade English course would cost a maximum of $1 million, and for twelve grades, it would be $12 million. If we create 30 different courses, including English, math, biology, science, etc., it would cost about $300 million. The U.S. provides $110 billion in subsidies to the education department each year; we only need to spend 0.3% of that to digitize all the educational content currently taught in schools over 18 years and teach it directly to children through the platform.

I am not doing this project to make money; all content is free. I believe the return on investment (not monetary return, but social impact return) is higher than any charity or donation, so I will continue to do this. This project makes me very happy. Over the past year, I spent four months trapped in prison, and before that, I spent five to six months preparing for court, so I only actually worked for a few months. Now, over 7,800 children are using our product, while many universities have only five to six thousand students. This success gives me a great sense of accomplishment.

Our starting point is not to get children to obtain school diplomas but to help them find jobs. A 10-year-old can earn money doing AI data labeling; my 13-year-old nephew manages a gaming community of 14,000 people, which is also a job that can earn money. However, if they want to obtain a diploma, they need to study many subjects, including language, math, English, natural science, and physical education.

Finding a job may only require one skill, and the age restrictions are quite flexible. For example, for programming, as long as you can communicate in basic English, that's enough; for graphic design, the requirements for other subjects are also not high. The purpose of this platform is not to get African children into Harvard but to help them find a job, whether remote or face-to-face, earning $300 to $2,000 a month, which is a high income in Africa. So this platform is fundamentally different from traditional education, and there will be significant design differences as well.

Foresight News: Besides the vibrancy in the crypto field, the global macro environment is not very good this year. Tariff issues exist not only between the U.S. and China but also between the U.S. and all its allies; the war between Ukraine and Russia has not stopped, and the conflict between Israel and Hamas in the Middle East continues. Do you pay attention to these macro situations?

Changpeng Zhao: I'm not particularly concerned, but I remain optimistic. I feel that the previous U.S. administration was not very friendly towards crypto, which is a profound personal experience for me. The new U.S. government has only been in office for about 60 days, similar to a company changing its executives; it takes a few months to stabilize operations. From my perspective, we cannot expect the new government to solve all problems within 10 days; many issues have accumulated over years, such as the war between Ukraine and Russia, which has deep historical roots.

However, I can clearly see that the U.S. government is working hard to address these issues, and the methods of resolution have significantly improved compared to before. While they may not be resolved immediately, at least there are active negotiations, and business negotiations typically take several months. Currently, the U.S. government is acting quite quickly, with new initiatives emerging every day.

This administration is relatively friendly towards digital currencies and the entire business sector. Of course, being business-friendly does not mean that stock prices will continuously rise, as this involves negotiations between countries, including tax issues, such as those between the U.S. and China, Canada, Mexico, and others. But as long as negotiations are ongoing, there is hope. Therefore, everyone should have reasonable expectations regarding these issues. I can clearly feel that this administration is much better than it was two months ago; although not all problems are resolved, there is at least a trend towards problem-solving.

I remain optimistic about the macro environment. In the future, the development of AI, robotics, and blockchain will require cooperation among several major countries, as China's production capacity is very strong. For example, many raw materials for U.S. robots are produced in China, making it difficult to sever the supply chain. So I am still quite optimistic.

Foresight News: You spent four months in prison last year, which is an unimaginable experience for ordinary people. How has this experience changed you? Do you consider it a nightmarish experience?

Changpeng Zhao: This experience was very unpleasant, but it wasn't to the level of a nightmare. In U.S. prisons, I was not physically threatened, and there were no fights, but the psychological pressure was immense.

The biggest worry was the uncertainty of how long I would be incarcerated. If I had known it would only be four months, my mindset might have been much more relaxed. However, I constantly worried that they would find reasons to keep me longer, and this uncertainty brought significant mental stress.

This experience has definitely changed my outlook on life, making me realize what is truly important. I used to be a workaholic, but in prison, all external possessions were stripped away, and what I missed most was not work, but my family and friends. Moreover, in prison, if you get sick, unless you're close to death, the doctors won't help you; if you have a cold or fever, you have to endure it yourself, which made me realize the importance of health.

There wasn't much else to do in prison, so I worked out every day. Although the food was not good, I still tried to eat a little. I lost 6 kilograms over the four months, but my physical condition was still decent, and my muscles became more developed. After getting out, I will cherish the time spent with my family more, and my focus in life will change. It was a very bad experience, and I wouldn't wish such a fate on anyone.

Foresight News: Did you get sick while in prison?

Changpeng Zhao: Yes, I had a cold and a sore throat three or four times during the four months. In prison, you can buy ordinary fever reducers, pain relievers, and vitamin C effervescent tablets. Less than two weeks after I entered, I had a sore throat and a slight fever, and I happened to need a medical check-up. I told the doctor I was not feeling well, and the doctor said they only check blood pressure and weight. If I needed treatment, I would either have to buy over-the-counter medicine from the store or reapply to see a doctor, but that would take three weeks. So in prison, you basically have to rely on yourself to buy medicine for treatment when you get sick.

Foresight News: Is there an economic and currency system in prison?

Changpeng Zhao: Yes, you can spend a maximum of $180 every two weeks, and buying things requires filling out an application form, which is quite cumbersome. You can only make purchases every two weeks. If the items you apply for are out of stock, you can't buy them, so you can't even spend the full $180; shopping is very restricted.

Foresight News: In the crypto field, there is another important figure in prison—Sam Bankman-Fried (founder of FTX). Based on your experience, do you think he should be given another chance? What is your evaluation of his actions?

Changpeng Zhao: I think it's better to refrain from commenting too much; people might think I have said too much already. I just believe that any fraudulent behavior should be punished to some extent, as many people have suffered significant losses because of it. But how to punish him specifically is not my area of expertise, so I won't comment further.

Foresight News: What is your primary concern at this stage? What are your plans for the next phase?

Changpeng Zhao: At this stage, I am spending a lot of time thinking about how to help other entrepreneurs succeed. I am not currently starting a business myself, but I have accumulated some experience from previous ventures. We have an investment fund, and if entrepreneurs need help, I can also serve as an advisor. Of course, many people seek me out, and we will conduct some screening. I hope to support hundreds or even thousands of successful entrepreneurs, allowing their projects to become unicorn companies. That would make me particularly happy, as it can indirectly promote the development of society as a whole. This is what I am most interested in right now.

We now have Yzi Labs, which we basically use to invest in and support entrepreneurs. I generally do not set particularly grand plans or outline specific matters for 5 or 10 years down the line. I tend to look in a certain direction; I know that in 5 or 10 years, the blockchain industry will be larger, the AI industry will continue to develop, and the life sciences will become more advanced. So I will continue to invest in these three areas and support entrepreneurial projects.

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