Aster News Today: CZ: Aster's Privacy Shields Traders from Algorithmic Exploitation

CZ, the former Binance CEO, has emphasized that Aster's privacy-centric design offers a structural advantage over Hyperliquid's transparent order books, citing decades of trading experience to underscore the importance of order privacy in institutional-grade trading. During an October 10 interview with CounterParty TV, Zhao attributed BNB Chain's recent surge in memecoin activity to an unplanned Mid-Autumn Festival post, which inadvertently catalyzed a wave of community-driven token creation. He argued that privacy-focused perpetual decentralized exchanges (DEXs) like Aster are better positioned to compete with centralized exchanges (CEXs) than transparent alternatives, as hidden orders mitigate the risk of algorithmic exploitation CryptoSlate^[1].

Aster's adoption of hidden orders, Zhao explained, addresses a critical vulnerability in platforms like Hyperliquid, where on-chain order books expose traders to front-running and reverse-engineering strategies. "Every trader on Wall Street I've spoken to doesn't want others to see their orders in real time," he stated, noting that transparent systems create "one-way opportunities to trade against them for them to lose money." This insight led to Binance Labs investing in Aster after Zhao's June 2025 post on the privacy issue generated 30 project pitches within 24 hours CryptoRank^[2].

The former Binance CEO also highlighted Aster's multi-chain compatibility and institutional-grade features, such as 100x leverage and stock perpetuals, as differentiators from Hyperliquid's single-chain focus. While Hyperliquid dominates the perpetual DEX market with ~71% volume share and $5.2 trillion cumulative trading volume, Aster has rapidly scaled to 19% market share, with $516 billion in cumulative volume and $2.4–2.9 billion in market capitalization. Zhao acknowledged Hyperliquid's strengths in speed and liquidity but emphasized that privacy, user protection, and multi-chain flexibility will be key battlegrounds in the DEX space Whales.market^[3].

Zhao's investment thesis extends beyond privacy to broader trends in decentralized finance. He predicted that perpetual DEXs could rival CEX volumes within one trading cycle, as users migrate from centralized platforms to DEXs for broader token access and early-stage opportunities. "In 20, 30, 50 years out, everything will be on-chain," he said, though he cautioned that CEXs may retain short-term dominance during periods of rapid onboarding CryptoSlate^[1].

The BNB Chain's memecoin ecosystem, fueled by CZ's influence, has also drawn attention to the intersection of privacy and speculative trading. Five BNB Chain memecoins reached $100–500 million market capitalizations in weeks, attracting Solana traders to BNB's utility-driven ecosystem. Zhao contrasted BNB's "holder-focused" culture with Solana's faster-paced meme dynamics, attributing the difference to regulatory pressures on utility tokens during the Biden administration, which pushed developers toward non-utility tokens CryptoSlate^[1].