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Tradfi ideas introduced in the cryptocurrency industry

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Tradfi ideas introduced in the cryptocurrency industry

On March 18th, Zhu Su, co founder of Sanjian Capital, stated on social media that most of the recent mistakes in the cryptocurrency industry are due to the introduction of tradfi ideas, such as “shadow banking” and “process internalization”. The next round of cryptocurrency bull market will be driven by people who are aware of these issues. The underlying cryptocurrency infrastructure itself is a new paradigm.

Zhu Su: Most of the mistakes in the encryption industry are due to the introduction of traditional concepts such as “shadow banking”

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The co-founder of Sanjian Capital, Zhu Su, recently shared his thoughts on the cryptocurrency industry on social media. According to Su, the recent mistakes in the cryptocurrency industry are due to the introduction of tradfi ideas, such as “shadow banking” and “process internalization”. These issues have contributed to the lack of oversight and transparency in the industry, leading to fraudulent practices and scams.

Tradfi ideas, or traditional finance ideas, are those that have been implemented in traditional financial industries for many years. These ideas were introduced into the cryptocurrency industry to help regulate the market, but they have had unintended consequences. “Shadow banking” refers to activities that are conducted outside of the traditional banking system, such as lending and borrowing activities carried out by non-bank financial institutions. “Process internalization” refers to the practice of conducting business activities within a single organization rather than outsourcing them to third-party companies.

Su believes that the next round of cryptocurrency bull market will be driven by people who are aware of these issues. This suggests that there will be a shift towards transparency and accountability in the industry, with greater emphasis on regulation and oversight. This is a positive development for the industry, as it will help to weed out fraudulent practices and scams, thereby improving the overall reputation of the industry.

The underlying cryptocurrency infrastructure itself is a new paradigm, different from traditional financial systems. The decentralized nature of cryptocurrency means that it is not subject to the same rules and regulations as traditional financial systems, which has both positive and negative implications. On the one hand, it allows for greater innovation and freedom in the industry. On the other hand, it also creates opportunities for fraudulent practices and scams, as there is no centralized authority to oversee and regulate the market.

In conclusion, Zhu Su’s message highlights the importance of being aware of the risks and challenges associated with introducing tradfi ideas into the cryptocurrency industry. While these ideas may have been introduced with good intentions, they have had unintended consequences that have contributed to the lack of oversight and transparency in the industry. However, with greater awareness and accountability, the industry can move towards a more regulated and transparent future, which will ultimately benefit all stakeholders involved.

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