CZ clarifies investment controversy: Genius Trading is an on-chain trading terminal, not a competitor of ASTER

Recently, news about YZi Labs investing in Genius Trading has sparked discussions in the community, with some worried that this investment might be bearish for ASTER. CZ clarified on X platform that Genius Trading is a trading terminal connected to trading platforms, not a competitor to ASTER. This clarification reflects a market misunderstanding of the role of on-chain trading infrastructure.

Where Do Community Concerns Come From?

According to the latest news, YZi Labs has made a multi-million dollar investment (over $10 million) in Genius Trading, with CZ also joining the project as an advisor. Once this news broke, some community members questioned: since CZ and YZi Labs invested in Genius Trading, does that mean ASTER will be marginalized?

This concern is not unfounded. In the crypto ecosystem, large funding rounds and the involvement of key figures are often seen as signals of a shift in project direction. With CZ being one of the most influential industry figures, any of his actions tend to be amplified and interpreted broadly.

CZ’s Clarification: Different Roles, Not Competition

CZ’s clarification was straightforward: Genius is a trading terminal, not a competitor to ASTER. This statement may seem simple but contains key information.

According to publicly available information, Genius Trading is a privacy-centric decentralized trading platform that offers an integrated trading terminal supporting self-custody and cross-chain operations, providing spot, perpetual contracts, and copy trading features. In short, it is a trading tool and access point, not an independent exchange or trading protocol.

Actual Role Differences Between the Two

Genius Trading’s Functionality and Positioning

Genius Trading mainly addresses user experience issues:

• Unified trading interface without the need for cross-chain bridges
• Access to liquidity across more than 10 blockchains (including BNB Chain, Solana, Ethereum, Hyperliquid, Base, Avalanche, Sui, etc.)
• Ability for users to trade without exposing their trading strategies
• Support for various trading modes such as spot, perpetual contracts, and copy trading

ASTER’s Role

Based on publicly available information, ASTER is a trading protocol or a project related to trading. The relationship between the two is more complementary than competitive — Genius may be a terminal connecting to multiple protocols like ASTER, rather than a replacement.

This is similar to the relationship between wallets and exchanges: a wallet is a tool, an exchange is a protocol. A good wallet can connect to multiple exchanges, which can actually enhance the trading experience.

Strategic Significance Behind the Investment

YZi Labs’ investment reflects a broader trend: the industry is increasingly focusing on improving on-chain trading infrastructure. Genius Trading aims to create a product similar to a “Binance on-chain alternative,” which implies:

• Improving on-chain trading experience is becoming a new competitive focus
• A unified entry point is needed to connect fragmented liquidity
• Privacy and self-custody are becoming key differentiators

CZ’s role as an advisor and YZi Labs’ investment are, to some extent, a vote of confidence in the development of the entire on-chain trading ecosystem.

Summary

CZ’s clarification dispels an important misconception: the funding of Genius Trading and CZ’s involvement do not mean a negation of ASTER, but rather an enhancement of on-chain trading infrastructure. In a multi-chain ecosystem, different projects often serve different roles — some at the protocol layer, some at the application layer, and others at the tool layer. Understanding these role differences is essential for accurately assessing each project’s value. Moving forward, it will be interesting to see how Genius Trading demonstrates these differentiated advantages in its actual products and how it cooperates with ASTER and other protocols.