Zhao Changpeng talks about the future of the blockchain industry after prison experience

In a recent interview with Fosite News, Binance founder CZ (Changpeng Zhao) revealed that his four months of incarceration in the United States fundamentally changed his outlook on life. He recalled, “The mental pressure caused by uncertainty was the hardest part,” and “it made me realize the importance of family and health.” This is more than a personal confession; it exemplifies how the priorities of a major figure in the blockchain industry have been reshaped when looking toward the future.

Strategic Choice: What Does Abu Dhabi Investment Mean?

Binance’s raising of $2 billion from MGX, an investment arm affiliated with the Abu Dhabi government, was not merely about funding but a strategic decision regarding regulatory environment and geopolitical positioning. CZ stated, “Binance is not a company lacking funds,” and explained, “The compliance framework and government support in the United Arab Emirates form a strategic foundation for global expansion.”

This approach indicates that as the cryptocurrency industry matures, technological innovation alone is insufficient; harmonization with regulatory frameworks is essential. CZ also mentioned that Binance received approaches from several sovereign funds but selectively partnered with only strategically important ones. This demonstrates that Binance’s pursuit is not just expansion but sustainable growth.

Meme Coin Frenzy: Balancing Community Creativity and Risks

CZ explained that his active engagement on X( and Twitter), interacting with meme coin communities, is part of a “learning process.” He said, “Initially, I didn’t understand the meme coin ecosystem, but through direct communication with the community, I realized its uniqueness.”

Several factors contributed to the rise of meme coins: dissatisfaction with traditional VC models, high expectations from small investors seeking high returns, and gaps in existing financial regulations. CZ emphasized, “Meme coins are very risky, but their transparency and openness are advantages,” and added, “Binance should support innovation while balancing user education and risk warnings.”

While Trump also participated in issuing meme coins, CZ analyzed, “It’s likely that a third party issued it in his name.” He advised that influential figures issuing meme coins should consider “long-term value and practical applications.”

The Future of Industry: Beyond Finance to Practicality

CZ stresses that the blockchain industry has already achieved significant innovation in finance. From the ICO era to DeFi and now the meme coin craze, technological barriers have continued to lower. However, he pointed out that the core logic of the industry remains unchanged: “It’s a structure where someone recognizes the concept, issues currency, and value is created when others participate.”

True growth lies in moving beyond financial speculation toward practical applications. CZ is focusing on investments in government service digitization via decentralized identity (DID), DeSci (decentralized science) projects, and on-chain application development. “What the blockchain industry currently lacks is not technology but real on-chain applications,” he said.

Regarding Binance’s listing strategy, CZ clarified that exchanges should not become tools for large investors or intermediaries for manipulating low-market-cap coins. He remains committed to the long-standing view that “decentralized exchanges will become more important than centralized ones.”

Lessons Learned in Prison

Four months of incarceration in the U.S. was the darkest time for CZ but also a catalyst for redefining his life priorities. The psychological pressure he experienced was not physical threats or violence but “uncertainty.” He recalled, “The hardest part mentally was not knowing how long I would be detained.”

In prison, he realized how much he was a workaholic. When he lost all material possessions, what he missed most was not work but family and friends. His health was also important. He exercised daily for four months, losing 6kg, but his muscles developed further, and managing colds and fevers himself taught him the importance of health.

The prison economy was also interesting. He could spend up to $180 every two weeks, with a very complex purchasing process. Even in this limited environment, he gained the insight that “the essence of life is not material but human relationships and health.”

Zigl Academic: An Educational Platform Creating Real Impact

One of CZ’s most notable projects outside the crypto industry is the educational platform ‘Zigl Academic.’ He explained, “From the perspective of positive impact rather than profit, education is the most valuable investment area.”

The problems with current education systems are clear. Textbooks have not been updated for 20-30 years, and uniform classroom education ignores individual students’ strengths and weaknesses. Globally, 300 million to 500 million children are out of school. CZ’s approach is radical: using gamified learning platforms on mobile phones and tablets to address global educational inequality, with the goal of enabling students to obtain real jobs, not just gain admission to Harvard.

He said, “Even a 10-year-old can earn money through AI data labeling,” attempting to break down the boundaries between education and economic activity. Over 7,800 children are currently using Zigl Academic, and he expressed that “reaching this scale in just a few months is a tremendous achievement.”

Future Investment Focus: The Triangle of Blockchain, AI, and Biology

CZ outlined his future investment strategy focusing on three core areas: blockchain infrastructure, artificial intelligence, and decentralized science (DeSci). He particularly regards DeSci as “a field that will contribute significantly to humanity and society in the long term.”

While the pharmaceutical industry is currently profit-driven, blockchain-based decentralized science funding opens new possibilities. Using smart contracts to restrict research funding, community voting to oversee progress, and distributing returns based on results, this model is innovative despite relatively small investment sizes—around $100,000 to $500,000—and the participation of global investors.

Optimism About the Global Macroeconomic Environment

CZ remains relatively optimistic despite current global instability—such as the Ukraine war, US-China trade disputes, and Middle East conflicts. He pointed out that the new US government is relatively friendly toward cryptocurrencies and corporations, and international negotiations are actively ongoing. “Not all problems are solved, but there is a trend toward resolving issues,” he assessed.

He emphasized that international cooperation among major nations is essential for the development of future technologies like AI, robotics, and blockchain, especially since China’s strong manufacturing capacity is central to supply chains. CZ believes this interdependence will ultimately lead to rational negotiations.

Next Steps: Focusing on Creating Entrepreneurs

Currently, CZ’s greatest interest is “supporting hundreds or even thousands of successful entrepreneurs.” After his prison experience, he redefined his role from an entrepreneur to a ‘facilitator.’ Through Yzi Labs, he supports startups in blockchain, AI, and life sciences, preferring to “follow a consistent direction and flow rather than detailed 5- or 10-year plans.”

His vision for the future is clear: in an era where blockchain continues to grow, AI evolves, and biology reaches new heights, discovering and nurturing the next generation of entrepreneurs. CZ’s transformation reflects not just a personal shift but also signals the broader direction for the entire blockchain industry.