Charles Hoskinson Claims CZ’s Downfall is “the End of an Era”
- Charles Hoskinson claims the US government will continue its push to regulate crypto.
- CZ resigned from his role as Binance CEO on Tuesday, following a settlement with regulators.
The resignation of Binance founder and former CEO Changpeng “CZ” Zhao is the most talked-about event in crypto over the last 24 hours. Several crypto executives and experts have given their say on the situation, with Charles Hoskinson branding it “ the end of an era.”
The Cardano founder shared his thoughts in a YouTube video on Wednesday, November 22. Hoskinson believes CZ’s situation sets precedence for crypto entrepreneurs, who will face stronger demands to comply with regulations.
Hoskinson argued in the clip that CZ belonged to a class of cryptocurrency entrepreneurs that “really epitomized the move fast, grow, and innovate side of things.” Hoskinson explained that CZ and Binance ushered in a new era of innovation in the crypto space that was different from previous experiences.
He claimed that early crypto adopters made trades using spreadsheets and sent money via PayPal to purchase bitcoin. He branded that period as the “first wave” of innovation in crypto. However, the second wave occurred in 2017 with the emergence of CZ and Binance. Hoskinson branded both parties as “Leviathans in our industry.”
“Trillions of dollars of assets flowed through his exchange,” Hoskinson said, describing CZ as “one of the greatest entrepreneurs of our time.” Hoskinson, however, cautioned that times are changing and crypto executives will no longer be allowed to use centralized platforms to avoid complying with the rules.
He further argues that “the U.S. has a financial regime that has basically been weaponized,” which prevents business owners from creating marketplaces where “the enemies of America […] trade and do things.”
Hoskinson predicts that the US government will continue its push to control cryptocurrency businesses and possibly attempt to impose limitations on external wallets.
CZ entered a guilty plea to federal offenses on Tuesday following a months-long investigation by the US Department of Justice. Up until Tuesday, CZ was one of the most influential figures in the cryptocurrency space.