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

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.

Interpretation of this information:

In a recent post on social media, Zhu Su, co-founder of Sanjian Capital, expressed his thoughts on the current situation of the cryptocurrency industry. According to him, the introduction of traditional financial ideas has resulted in numerous mistakes in the field of cryptocurrencies. Su mentioned two such ideas, namely “shadow banking” and “process internalization”, which he believes have caused significant problems.

“Shadow banking” refers to an unregulated financial system that operates outside the mainstream banking sector. This practice can be observed in the cryptocurrency industry, as many businesses and individuals operate without proper regulatory oversight. Due to this lack of regulation, illicit activities such as money laundering and fraud have become commonplace in the industry. In addition, the lack of transparency has made it difficult for investors and consumers to make informed decisions.

“Process internalization” refers to the practice of integrating various functions within a business to create a streamlined and efficient process. In the cryptocurrency industry, this practice has led to the creation of numerous complex systems and processes. However, these systems are often opaque, and their functioning is not fully understood by those who use them. As a result, errors and security breaches continue to occur.

Su believes that the next bull market in the cryptocurrency industry will be driven by individuals who are aware of these issues. These individuals will prioritize transparency and regulation, avoiding the mistakes of the past and promoting sustainable growth. He argues that the underlying infrastructure of the cryptocurrency industry itself represents a new paradigm, with the potential to revolutionize traditional finance.

In summary, Zhu Su’s message highlights the importance of regulation and transparency in the cryptocurrency industry. He argues that the introduction of traditional financial ideas has caused significant problems and that the next bull market will be driven by those who prioritize transparency and regulation. Three important keywords from his message are “shadow banking”, “process internalization”, and “new paradigm”.