With the strong rise of the decentralized perpetual contract exchange Hyperliquid, even former Binance CEO CZ (CZ) gave it high praise, but his words revealed a lot of helplessness as someone who had been there.
According to the preview video of the "Galaxy Brains" podcast interview released today (16th) on the X platform by Alex Thorn, head of Galaxy Research, CZ gave his first personal opinion on Hyperliquid's business model and regulatory risks in the program.
Praise for the no-KYC niche market; Binance can't compete.
In the short 38-second teaser video, CZ openly acknowledged Hyperliquid's success in technology and market positioning. He stated, "I think Hyperliquid's invention is actually awesome. They occupy a niche market that Binance can't compete in because they don't have KYC (Know Your Customer) and call themselves a decentralized platform."
Hyperliquid, currently one of the leading decentralized derivatives exchanges in the market, focuses on high efficiency and a trading experience that requires no cumbersome verification, which has quickly attracted a large number of traders and funds who do not want to be restricted by the regulatory framework of centralized exchanges (CEXs).
A warning from someone who's been there: I would never do what they did.
However, it is precisely this "no KYC" characteristic that makes CZ, who has just experienced a huge fine from the U.S. Department of Justice (DOJ) and completed his sentence, feel lingering fear.
In the interview, CZ added with a laugh, "Based on everything I've been through, I would never do what they're doing now... I guess they must have a very good legal team." He also mentioned that these kinds of decentralized projects often require "they to handle" the related compliance and regulatory risks themselves.
The release of these interview highlights immediately sparked discussion in the community. Some netizens humorously commented that CZ's remarks were particularly interesting considering that Binance's own BNB Chain is also a decentralized network. Alex Thorn announced that the full series of CZ interviews will be officially released this Thursday, and is expected to offer more in-depth insights into the future of the crypto market and regulatory compliance.
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