Changpeng Zhao, better known by his initials CZ, is a legendary figure in the cryptocurrency world. As the founder and former CEO of Binance, CZ transformed himself from relative obscurity to becoming a global leader in the crypto industry in just a few years. His journey is not only a tale of personal grit and brilliance but also a testament to the transformative power of blockchain technology. Packed with risk-taking, innovation, perseverance, and challenges, CZ’s story offers invaluable lessons for aspiring entrepreneurs and crypto enthusiasts alike.
1. From a Rural Childhood in Jiangsu to Immigrating to Canada: The Beginning
Changpeng Zhao was born in 1977 in Lianyungang, Jiangsu Province, China, to an ordinary family. His father, a professor, was labeled an “intellectual bourgeois” during the Cultural Revolution, subjecting the family to numerous hardships. At the age of 10, CZ immigrated to Canada with his parents, settling in a university residence in Vancouver. Compared to local students, his family was far from wealthy, with his parents’ income barely covering daily expenses.
Despite these early struggles, CZ thrived. To help support the family, he worked part-time at McDonald’s and took overnight shifts at Chevron gas stations during his teenage years. These experiences honed his resilience and taught him how to navigate adversity. CZ developed a keen interest in computers and programming, which laid a solid foundation for his future career.
2. Internship in Tokyo: Early Career Foundation
CZ enrolled at McGill University in Montreal, Canada, majoring in computer science. During this time, his passion for technology, particularly artificial intelligence and programming, began to take shape. However, it was a book titled Rich Dad, Poor Dad that profoundly impacted his worldview. The book’s insights on wealth and assets made CZ realize that a stable job alone couldn’t lead to true financial freedom, igniting his entrepreneurial aspirations.
In 2000, CZ secured an internship at the Tokyo Stock Exchange, where he worked on developing trading matching systems. This internship marked his entry into the financial industry. After graduation, he joined Bloomberg, where he was responsible for building futures trading software. Within just two years, CZ was promoted three times, managing several international teams. Despite his promising career, CZ felt unfulfilled and longed to return to China, a rapidly emerging market, to pursue his ambitions.
3. Starting Fresh in Shanghai: The First Entrepreneurial Step
In 2005, CZ returned to China and founded Fusion Systems in Shanghai, a fintech company specializing in high-frequency trading systems. The company quickly gained recognition for providing cutting-edge solutions to international investment banks. While the venture was profitable, CZ yearned for something more groundbreaking—an opportunity to make a lasting global impact.
That opportunity came in 2013 during a casual poker game with friends. The conversation turned to Bitcoin—a new concept in digital currency. Intrigued, CZ printed out Bitcoin’s nine-page whitepaper and studied it thoroughly. He was deeply impressed by its disruptive potential and believed it represented the future of finance and technology.
Convinced by Bitcoin’s promise, CZ made a bold decision: he sold his Shanghai apartment and invested all his assets in Bitcoin. He also resigned from his stable job at Fusion Systems to fully immerse himself in the crypto space. However, the early days were anything but smooth. Bitcoin’s price dropped 70% shortly after his investment, wiping out nearly two-thirds of his assets. CZ’s mother criticized him, calling him a “stupid boy.” Yet CZ remained undeterred, convinced that while Bitcoin’s price was volatile, the underlying blockchain technology held undeniable potential.
To deepen his understanding of blockchain, CZ joined Blockchain.info, a pioneering crypto wallet company, where he worked with industry leaders like Roger Ver and Ben Reeves. This experience provided him with valuable insights into the technology and ecosystem, laying the groundwork for his future ventures.
4. Joining OKCoin (Now OKX) and Meeting He Yi: A Partnership of Shared Vision
In the spring of 2014, CZ met He Yi for the first time at a blockchain industry event. The gathering attracted early blockchain enthusiasts in China, and CZ’s deep insights into Bitcoin and blockchain impressed the audience. He Yi, already a prominent figure in the industry with exceptional marketing skills, was drawn to CZ’s passion and vision.
The two quickly bonded over their shared beliefs about the future of blockchain. He Yi later remarked, “I admired his dedication to blockchain and his boldness to go all-in.” CZ, in turn, was impressed by He Yi’s talent in marketing and outreach. Their mutual respect laid the foundation for a future partnership.
At He Yi’s recommendation, CZ joined OKCoin as Chief Technology Officer (CTO), where he led the development of the platform’s core systems, optimizing its infrastructure and enhancing user experience. However, as he became more involved, CZ found himself at odds with the management over user rights, platform transparency, and long-term strategy. Eventually, CZ left to pursue his vision of creating a truly user-centric, global, and tech-driven trading platform.
This brief yet significant stint also strengthened CZ and He Yi’s professional relationship. When CZ founded Binance three years later, He Yi was his first choice to join the team as Chief Marketing Officer (CMO). Their partnership, a blend of technological innovation and marketing brilliance, would drive Binance to unparalleled heights in the crypto world.
5. Binance’s Meteoric Rise: From Zero to the Top
In 2017, CZ officially launched Binance. With low transaction fees, a wide selection of cryptocurrencies, and a user-friendly experience, Binance quickly attracted a massive user base. CZ’s innovative approach, from introducing futures trading to launching Binance Coin (BNB), propelled the platform to global prominence.
BNB became the cornerstone of Binance’s ecosystem, offering users discounts on transaction fees and serving as a utility token across various Binance services. Its growing use cases and rising demand catapulted BNB into the top five cryptocurrencies by market capitalization.
Within six months of its launch, Binance surpassed its competitors to become the world’s largest cryptocurrency exchange by trading volume. CZ’s ability to execute his vision and expand globally cemented Binance’s position as an industry leader.
6. Facing Challenges and Crises: Regulation and Trust
As Binance rose to prominence, CZ faced increasing scrutiny from global regulators. From China’s ICO ban in 2017 to stringent audits in the U.S. and Europe, Binance had to adapt its strategies to navigate complex regulatory landscapes.
Despite controversies, including allegations of inadequate anti-money laundering measures, CZ remained steadfast, emphasizing Binance’s commitment to user protection and regulatory compliance. While these challenges tested Binance’s resilience, they also strengthened its global footprint and reputation.
In late 2023, CZ pled guilty to charges from the U.S. Department of Justice regarding Binance’s compliance shortcomings. He paid significant fines and stepped down as CEO. During this time, CZ reflected on his leadership approach and began planning his next steps.
7. CZ’s Principles : Vision and Efficiency
CZ is known for his highly efficient, no-nonsense leadership style. He prioritizes core tasks, avoids unnecessary distractions, and emphasizes goal-oriented management. Key principles include:
- Fairness and Long-Term Relationships: Ensuring win-win outcomes for all stakeholders.
- Decentralization and Innovation: Encouraging creativity by avoiding over-structuring.
- User-Centric Approach: Prioritizing user interests, which has been the cornerstone of Binance’s success.
8. A New Chapter: CZ’s Vision for the Future
In 2024, during Binance Blockchain Week in Dubai, CZ announced his plans to focus on blockchain education and mentorship while exploring the intersection of AI and crypto. He remains deeply passionate about the industry and aims to inspire the next generation of entrepreneurs.
Though no longer Binance’s CEO, CZ is determined to contribute to blockchain’s growth by investing in emerging technologies and sharing his expertise. “My journey isn’t over,” he said. “I’m just continuing in a new way.”
9. Conclusion: CZ’s Legacy and Lessons
CZ’s story is more than a rags-to-riches tale—it’s a testament to courage, innovation, and resilience. His journey illustrates that success is achieved not overnight but through persistence and adaptation.
As a pioneer who has shaped the blockchain world, CZ’s legacy will endure as a symbol of possibility and inspiration for generations to come.