CZ: Price prediction aids in price discovery, and Hyperliquid validates new market demand

On June 20th, Binance founder Changpeng "CZ" Zhao appeared on the Galaxy Brains podcast, sitting down for an interview with Galaxy Research Director Alex Thorn. During the discussion, CZ hailed prediction markets as a clever, valuable invention—while noting they’re not new, he emphasized any tool that drives price discovery and liquidity is a net positive. He argued these markets tend to be more accurate than other forecasting methods because people with stronger judgment will participate by putting real money at stake. CZ called the news that Polymarket and Kalshi secured U.S. licenses a positive development, adding he hopes more crypto-focused prediction market projects will operate responsibly. Turning to Hyperliquid, CZ said the platform has unlocked a previously unproven market demand. Its team is small but highly capable, with solid technological innovation—but drawing from his own experience, he wouldn’t adopt Hyperliquid’s current KYC-free operating model. He also noted that if traditional financial firms like CME launch crypto perpetual contracts in the U.S., they’ll serve the American institutional market Binance Global hasn’t reached. For context, CZ added that more crypto derivative trading platforms are a good overall thing, and boosting liquidity is the best way to protect users long-term. Earlier, CZ revealed YZI Labs’ current investment allocation is roughly 70% crypto, 20% AI, and 10% biotech. He stressed YZI should prioritize impact over just financial returns, pointing out biotech investments offer more direct psychological rewards because this technology could help millions of people down the line.