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Changpeng “CZ” Zhao, former CEO of Binance, is advising Kyrgyzstan on becoming a crypto hub. He signed an agreement with the Kyrgyz National Investment Agency to build the nation’s Web3 capacities.

A cornerstone of this plan is Kyrgyzstan’s A7A5 stablecoin, pegged to the Russian ruble and focused on emerging markets. CZ claimed that he has been advising several governments “officially and unofficially” regarding crypto.

CZ Helps Kyrgyzstan Drive Crypto Adoption

Countries worldwide are becoming more interested in crypto integration lately. Although Kyrgyzstan has not been a particular hub for crypto activity, it is trying to turn a new leaf.

According to the latest announcements, the country is developing a new A7A5 stablecoin pegged to the Russian ruble. Kyrgyzstan’s crypto turn is also being influenced by Changpeng “CZ” Zhao, the founder of Binance.

“A Memorandum of Understanding has been signed between the National Investment Agency under the President of the Kyrgyz Republic and Changpeng Zhao (CZ). In accordance with the Memorandum, the parties intend to cooperate in the development of the cryptocurrency and blockchain technology ecosystem in the Kyrgyz Republic,” claimed President Sadyr Zhaparov.

CZ is a very influential figure in crypto and has been involved with a few official governments in his career. For example, last month, allegations surfaced that he was working with President Trump to establish a new dollar-backed stablecoin.

Meanwhile, CZ acknowledged his business in Kyrgyzstan, claiming that he introduced President Zhaparov to X, the social media site.

“I officially and unofficially advise a few governments on their crypto regulatory frameworks and blockchain solutions for gov efficiency, expanding blockchain to more than trading. I find this work extremely meaningful,” CZ claimed via social media.

Although CZ’s connection with Kyrgyzstan’s new A7A5 stablecoin is not fully known, it would align with his recent alleged Trump dealings.

Zhaparov’s statement claimed that the Binance founder will provide infrastructural, technological support, technical expertise, and consulting services on crypto and blockchain technologies.

Also, the president went on to state that this agreement with CZ will strengthen Kyrgyzstan’s standing in the growing Web3 environment. The long-term plan is to help create new opportunities for Kyrgyz businesses and society as a whole.

Presumably, this will involve some cooperation with Russia, as A7A5’s press release mentions “a new class of digital assets tied to the Russian economy.” This stablecoin is bucking significant tradition by aligning with the ruble instead of the dollar.

However, this is part of its strategy to focus on emerging markets. This novel experiment could demonstrate new market opportunities and challenge the dominance of USD-pegged stablecoins in the region.

The post Binance’s CZ Is Advising Kyrgyzstan On Crypto and Blockchain Adoption appeared first on BeInCrypto.

Changpeng “CZ” Zhao is having another public dispute with Bloomberg over his recent efforts to advise various governments on crypto policy.

The Binance founder once again called out the publication for negatively framing his advisory efforts. CZ continues to stress that several media outlets take his remarks out of context to drive breaking news.

CZ Continues to Face Media Scrutiny

Changpeng “CZ” Zhao, former CEO of Binance, has recently been involved in a few spats with major publications. Three years ago, he sued one of the Bloomberg subsidiaries for defamation.

Most recently, several US-based publications circulated allegations about a potential deal with the Trump family. After denying those claims, Bloomberg again published an article centered on CZ’s work advising various governments, prompting a harsh response.

In recent months, CZ has been actively advising the government on crypto policies and digital asset regulations. This month alone, he advised Kyrgyzstan on building its crypto hub and joined the Pakistan crypto council.

Earlier this week, he met with the Prime Minister of Malaysia to “discuss [the country’s] potential to become a major hub” for crypto.

This particular meeting was the center of Bloomberg’s report today, framing the regulatory efforts in a negative context.

Specifically, the article repeatedly called attention to his prison stint for money laundering charges, which he pleaded guilty to. It mentioned his criminal past several times in addition to previous reprimands from regulators.

In other words, several US-based media outlets find it ironic that CZ influences crypto laws due to his struggles with the legal system.

However, his actual advice is pretty standard. As a major crypto leader, it’s unsurprising that CZ advocates for balanced or even loose regulation.

Bloomberg also quoted a few of CZ’s comments at various public appearances, which he claims were taken out of context. For example, it referred to a Q&A about Giggle Academy.

Giggle is a non-profit online education platform that helps youths in emerging markets find employment. When asked about concerns of promoting child labor, he responded:

“I’ve got to be careful on this one. We don’t want to violate any laws about working age. Giggle doesn’t offer a job market on the platform today, but it plans to in the future. We are also willing to work with labor ministries to review or at least explore what’s the right working age for kids,” CZ said.

CZ called this quote a joke, chiding the publication for focusing on it instead of the talk’s main points. Giggle has enrolled over 28,000 children, he claimed.

The article paints his activities in a dark light by constantly referring to his criminal conviction and pairing this remark about “working with labor ministries” with his efforts advising government policy.

The post Binance’s CZ and Bloomberg Continue to Clash Over Crypto Advisory Reports appeared first on BeInCrypto.

The recent depeg incident involving sUSD from Synthetix has highlighted that this sector remains fraught with risks despite the immense potential of algorithmic stablecoins. 

The sUSD incident is not the first to expose the vulnerabilities of algorithmic stablecoins. From technical challenges and regulatory pressures to dwindling community trust, projects in this space must navigate numerous obstacles to survive and thrive.

The Landscape of the Algorithmic Stablecoin Market

Algorithmic stablecoins, which maintain their value without direct asset backing, were once hailed as a breakthrough in decentralized finance (DeFi). However, according to CoinMarketCap data from April 2025, the total stablecoin market capitalization stands at $234 billion, while algorithmic stablecoins account for about $458 million, equivalent to just 0.2%.

This stark disparity reflects the reality that algorithmic stablecoins have yet to gain widespread trust from the community. High-profile failures like the collapse of UST/LUNA in 2022, coupled with regulatory uncertainties such as the EU’s MiCA framework, have fueled skepticism.

More recently, the depeg of Synthetix’s sUSD is a typical example of this model’s inherent risks.

A Deep Dive into Synthetix’s sUSD Depeg

Synthetix is a well-known DeFi protocol celebrated for its synthetic asset system. Within this ecosystem, sUSD is an algorithmic stablecoin designed to peg its value at 1 USD, backed by the SNX token and price data from Chainlink.

However, sUSD has faced significant challenges with a prolonged depeg recently. At the time of BeInCrypto’s report, sUSD was trading at 0.77 USD, which has persisted since late March 2025. The primary cause was a major liquidity provider withdrawing from the sBTC/wBTC pool on Curve, which triggered intense selling pressure on sUSD. This forced users to convert other synthetic assets like sETH or sBTC into sUSD, exacerbating the price decline.

On April 21, 2025, Kain Warwick, the founder of Synthetix, announced on X that the team had implemented an sUSD staking mechanism to address the issue. However, he noted that the mechanism remains manual and lacks a fully functional user interface (UI), which is expected to launch in a few days.

“Update on the sUSD depeg. We have implemented an sUSD staking mechanism but it’s very manual until the UI goes live in a few days. Here was my hot take from discord though,” shared Kain Warwick, founder of Synthetix.

Warwick further stated that if the incentive mechanism (carrot) proves ineffective, Synthetix would adopt stricter measures (stick) to compel stakers in the 420 pool to participate more actively. He emphasized that, with the collective net worth of SNX stakers reaching billions of USD, Synthetix has the financial resources to stabilize sUSD and resume development of derivative products on Layer 1.

No Successfully Algorithmic Stablecoin Project

Before the sUSD depeg incident, the market witnessed the dramatic collapse of UST/LUNA in 2022. UST, Terra’s algorithmic stablecoin, suffered a severe depeg, dragging LUNA’s value down from $120 to near zero. This event caused billions of USD in losses and significantly eroded trust in the algorithmic stablecoin model.

More recently, the ‘Godfather of DeFi’, Andre Cronje, behind Sonic (formerly Fantom), also shifted direction. Sonic initially developed a USD-based algorithmic stablecoin but later pivoted to a stablecoin pegged to the UAE dirham.

“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement,” Cronje stated.

Beyond technical risks, algorithmic stablecoins face mounting regulatory pressures. The EU’s MiCA regulation, effective since June 2024, imposes strict standards on stablecoin issuers to ensure consumer protection and financial stability. Under MiCA, algorithmic stablecoins are classified as ART (Asset-Referenced Token) or EMT (E-Money Token), requiring projects to meet complex compliance demands.

This intensifies the pressure on developers, especially as other jurisdictions also tighten crypto regulations.

These examples show the vulnerability of algorithmic stablecoins to liquidity shocks and market sentiment, particularly due to their lack of direct asset backing.

The Potential of Algorithmic Stablecoins

Despite the challenges, algorithmic stablecoins still hold developmental potential. A March 2025 post on X by CampbellJAustin suggested that a next-generation decentralized algorithmic stablecoin is feasible if lessons are learned from past failures.

“I actually think a next-gen decentralized algorithmic stablecoin is possible. I also think it will not be done correctly by the crypto community because the primary constraints are economic and risk management, not technological,” CampbellJAustin shared.

However, projects must focus on building more price stability mechanisms, combining algorithms with liquidity safeguards to succeed. Additionally, they should prepare for regulatory requirements, particularly in regions with stringent rules like the EU. Transparency in operations, regular audits, and clear communication with users are crucial to rebuilding community trust.

By addressing these factors, projects in this space can seize the opportunity to regain confidence and drive innovation.

The post sUSD Depeg Rekindles Terra Flashbacks—Can Algorithmic Stablecoins Ever Win Trust? appeared first on BeInCrypto.