CZ: Anticipates that the bull market will drive more capital inflows, advises retail investors to proactively learn about asset security protection.

November 3 - Binance founder CZ said in an interview, "Typically, after a security incident, some users do choose to withdraw funds. Some large institutions, due to internal policy requirements, must withdraw funds, and some retail investors follow them in withdrawing. But after withdrawal, users face another problem: where is it safer to store their money? I personally did not suffer any financial loss on Binance because Binance bore the losses caused by this incident. This incident is indeed frightening, but the question is, where else can I transfer my funds? Recently, multiple hardware wallets have also been attacked, one involving a supply chain attack and another involving an attack in the mnemonic generation process. This means that even if users make no operational mistakes and strictly follow all security protocols, buying their own hardware wallets and generating mnemonics, they could still lose all their funds five years later without any fault, and no institution will bear the loss for them.

The first wave of impact has already occurred, and Binance was also attacked and completed repairs. Next, the second wave of impact may affect smaller platforms, and these platforms are not necessarily safer. Therefore, some users initially choose to withdraw funds, but may subsequently find that they need to re-manage mnemonics and self-custody their assets. In fact, less than 10% of funds flowed to other centralized trading platforms, which means most funds may have been transferred to users' own self-custodial wallets. But using self-custodial wallets is not without risks. Users must properly back up mnemonics and ensure they are not lost or damaged. In fact, most users' losses when self-custodying assets are not even caused by hacker attacks. Therefore, after weighing the options, users may reconsider depositing funds back into trading platforms. In fact, within less than 24 hours, we have already seen changes in fund flows. I just saw a tweet showing that the platform's hourly fund flow data has turned to net inflow, which actually reflects the platform's strength and users' trust in the platform. I think fund flows will continue to fluctuate in the coming weeks and even months. As we said before, if the market re-enters a bull run, we will see more capital inflows.

I think there are actually many aspects that need attention. First, technology is developing very fast, especially AI, whose growth rate is astonishing, with an exponential growth trend that even exceeds people's ability to comprehend. Second, I think the entire crypto industry still underinvests in security. Frankly speaking, many AI security tools have not yet been truly applied in the industry. Therefore, I encourage all practitioners to increase investment in these areas, including increasing the number of security engineers, introducing more AI tools, and working closely with AI security service providers. I think these are all crucial. For ordinary users, that is, what we call retail investors, I suggest everyone proactively learn about different security tools, learn how to protect their assets, and closely follow industry developments and related news. Especially at the current stage, these are all very important."