Binance CEO Changpeng Zhao has an optimistic outlook on decentralized finance (DeFi) following the court’s recent ruling on an investor suit against the decentralized crypto exchange (DEX) Uniswap.
Last week, Judge Katherine Polk Failla of the Southern District of New York dismissed the case that sought to make Uniswap (UNI) accountable for the financial losses of investors who allegedly traded “scam tokens” on the protocol.
During an AMA (Ask Me Anything) session on the social media platform X, Zhao says Failla’s ruling that the decentralized nature of Uniswap leaves no identifiable defendant in the case is very positive for DeFi.
“I agree with the fact that the Uniswap ruling was extremely positive. It’s also extremely reasonable and logical and clear, so that’s very good. Developers writing code, and code is basically free speech, so I think that development is really good.
As I said many times before, I think DeFi is the future.”
Uniswap has historically lagged behind Coinbase in terms of trading volume but that changed in Q1 of 2023, according to the crypto asset manager Bitwise.
Zhao says Uniswap’s lead in volume is a positive sign for DeFi, and says that in the next bull run, DeFi could ultimately become bigger than centralized finance (CeFi).
“DeFi volume is somewhere between 5% to 10% of CeFi volumes, which is not small. Uniswap, for the last two quarters, their volume was bigger than Coinbase spot, so the next bull run may very well make DeFi bigger than CeFi. I think that’s a very good development. I think the more decentralized the industry becomes, the better.”
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