Zhao Changpeng: It is expected that the bull market will drive more capital inflow, and retail investors are advised to actively learn about asset security protection

Binance founder Changpeng Zhao stated in an interview, "Typically, after an attack event, some users do choose to withdraw their funds. Some large institutions are required by internal policies to withdraw funds, and some retail investors may follow suit.

However, after withdrawing, users face another question: where is it safer to store their money? I personally have not suffered any financial losses on Binance because Binance has absorbed the losses caused by this incident. This event is indeed frightening, but the question is, where can I transfer my funds? Recently, several hardware wallets have also been attacked, including one supply chain attack and another involving the mnemonic phrase generation process. This means that even if users make no operational mistakes and strictly follow all security protocols, purchasing hardware wallets and generating mnemonic phrases, they could still lose all their funds five years later without any fault, and no institution will bear the losses.

The first wave of impact has already occurred, and Binance has also been attacked and completed repairs. Next, the second wave of impact may affect smaller platforms, which may not necessarily be more secure. Therefore, some users may initially choose to withdraw, but later realize that they need to manage their mnemonic phrases and store their assets themselves. In fact, less than 10% of the funds flowed to other centralized trading platforms, which means that most of the funds may have been transferred to users' own self-custody wallets. However, using self-custody wallets is not without risks. Users must properly back up their mnemonic phrases and ensure they do not get lost or damaged.

In fact, most losses suffered by users when self-custodying assets are not even caused by hacker attacks. Therefore, after weighing their options, users may reconsider depositing their funds back into trading platforms. In fact, within less than 24 hours, we have already seen a change in fund flows. I also saw a tweet earlier showing that the fund flow statistics for the platform have turned into a net inflow on an hourly basis, which actually reflects the strength of the platform and users' trust in it. I believe that in the coming weeks and even months, fund flows will continue to fluctuate. As we mentioned before, if the market re-enters a bull market, we will see more funds flowing in.

I believe there are many aspects that need attention. First, the speed of technological development is very fast, especially AI, which is growing at an astonishing rate, and the trend of exponential growth even exceeds people's understanding. Secondly, I believe that the entire cryptocurrency industry is still under-invested in the security field. Frankly speaking, many AI security tools are not yet truly applied in the industry.

Therefore, I encourage all practitioners to increase their investment in these areas, including increasing the number of security engineers, introducing more AI tools, and closely collaborating with AI security service providers. I believe these are crucial. For ordinary users, what we call retail investors, I suggest everyone actively learn about different security tools, understand how to protect their assets, and closely follow industry trends and relevant news. Especially at this current stage, all of this is very important."