CZ Tests On-Chain Contract Trading, Raises Privacy Concerns
CZ tested on-chain contract trading this morning and stated that there are privacy issues that do not meet the standards of CEX. He emphasized that this test was merely a routine operation and the market need not pay excessive attention. However, it still led to a significant rise in the native tokens of $Mubarak and APX Finance.
(Background: CZ’s Dominance: From BNB Meme Coin to Binance Wallet, an Overview of the Crypto Billionaire’s Chain Strategy)
CZ’s On-Chain Trading Experience
Binance founder Zhao Changpeng (CZ) conducted his first on-chain contract trade this morning, trying out the user experience of the APX platform. CZ opened a long position of $Mubarak at 24.7x leverage using 0.4 BNB with a public donation address on the decentralized derivatives exchange, APX Finance.
He admitted that he had never traded futures on centralized exchanges like Binance and had only seen related product demonstrations. Regarding his first on-chain trading experience, CZ stated:
“There is a significant gap in the on-chain trading experience compared to CEX (Centralized Exchanges).”
He also wanted to examine whether the previously criticized MEV (Maximal Extractable Value) issue still exists on-chain.
Privacy Issues in Futures Trading Take Center Stage
Additionally, CZ emphasized that on-chain contract trading lacks the necessary privacy protection. He pointed out that on-chain transactions publicly disclose positions and liquidation prices, which may violate the privacy principles that futures trading should uphold.
He believes that futures trading should have a certain degree of privacy, and this public design could expose market participants’ trading strategies and positions, thereby affecting traders’ privacy and security.
Attempt to Downplay the Operation: Market Need Not Overreact
Although Zhao Changpeng attempted to downplay the incident, his actions still sparked enthusiastic discussions within the community. @MisterNarcos replied “Perfect”, while @Katherine_XBT remarked “Builders never stop”… leading to a surge in the native tokens of $Mubarak and APX Finance.
CZ stated that this test was merely a routine operation and had concluded on the same day. He emphasized:
“The test results should not be overinterpreted, and I advise the market not to pay excessive attention to this test outcome.”
Done testing.
— CZ BNB (@cz_binance) March 23, 2025
Further Reading: CZ’s First On-Chain Contract Purchase: $Mubarak “25x Leverage Long” Earns 148% in 10 Minutes, Sharing 2 Trading Insights
