CZ’s Sentencing: The Impact on the Current State of Crypto

The Sentencing of Binance CEO and Its Implications for Web3

A Significant Verdict

Changpeng Zhao, commonly known as CZ, the CEO of Binance, has been sentenced to four months in prison and a substantial fine for his crypto exchange’s wrongdoings. This verdict, regardless of one’s opinion on its severity, carries significant weight for the web3 industry, potentially in a positive manner.

The Computer vs. Casino Debate

Within the crypto community, there is a push by some to emphasize the technological aspects of blockchains over their notorious ability to create new gambling opportunities. a16z‘s Chris Dixon presents this as a ‘computer v casino’ dichotomy, which seems reasonable.

Aligning with Financial Norms

Those who prioritize the computer over the casino likely desire the crypto market to align as closely as possible with financial norms. The rationale behind this is that it allows crypto to integrate seamlessly with the broader world economy, enabling the computational elements of blockchain technology to shine, attract investment, and maximize their utility. However, this alignment might result in more tokens being classified as securities than many crypto proponents would prefer.

The Next Chapter for Crypto

With the cases of CZ and SBF now resolved, the question arises: what lies ahead for the crypto industry?