Binance founder CZ Responds to Tokenization Proposal: Ideas are Worthless, Execution is Key.

On April 3, Binance founder CZ share his thoughts on an asset tokenization proposal he received via the ReachMe.io. The proposal introduced a new model aimed at tokenizing assets such as real estate, commodities, and stocks, alongside creating a decentralized stablecoin fully backed by cryptocurrency. The sender expressed confidence that the model "will disrupt the stablecoin market and render current solutions obsolete".

CZ responded to the proposal: “I stay away from fancy models. And I never buy ideas. Ideas are worthless. Execution is key.”

To further elaborate, CZ shared three key principles of his investment philosophy:

1. Focus on Fundamentals: CZ emphasized the importance of essentials such as product, user growth, revenues/profits, and the strength of the team over complex business models.

2. Bet Long-Term, Get in Early, and Hold: He noted that early adopters often receive disproportionate rewards despite facing failures along the way. “The few successes will more than make up for them,” CZ stated.

3. Invest in Mission-Driven Founders: CZ highlighted the significance of having a vision beyond profit, explaining, “Money-focused founders often falter after a medium level of success. Those committed to a greater cause create more sustainable, impactful businesses.”

CZ’s response reflects Binance’s consistent focus on execution over flashy ideas. This philosophy has been evident in Binance’s recent business strategies, particularly in leveraging existing trends to strengthen its ecosystem.

For instance, Binance Smart Chain (BSC) capitalized on the meme coin frenzy that originally flourished on the Solana blockchain. By fostering community-driven development and engaging users through frequent interactions from figures like CZ and He Yi, Binance successfully attracted numerous memecoin projects and funds to BSC. Such efforts demonstrate Binance’s ability to execute and expand its ecosystem without introducing entirely new business models.

Binance Wallet has also played a pivotal role in sustaining activity on BSC. Amid a lack of broader market trends, Binance has used frequent Token Generation Events (TGEs) to channel idle funds into the BSC ecosystem. According to DefiLlama data, BSC saw a net inflow of over $50 million last week, marking a yearly high. PancakeSwap’s daily trading volume surpassed $1.8 billion, maintaining its position as the top decentralized exchange (DEX).

Moreover, Binance keeps adjusting its TGE mechanisms to maximize user benefits. Adjustments such as shortening staking windows to reduce fund lock-up times and minimizing fundraising periods to prevent multi-account arbitrage have improved accessibility for genuine community participants.