Summary of the News
Recently, Zhao Changpeng, the founder of Binance, a leading company in the cryptocurrency industry, spoke publicly: Marketing can be aggressive, but it must not involve personal attacks, the exposure of private information, or the destruction of others' professional reputations. Disputes should be resolved through legal channels. This statement is widely believed to be a reference to Sun Yuchen's behavior of using publicized personal disputes to gain attention. Subsequently, Zhao Changpeng blocked Sun Yuchen, bringing the topic of "the boundaries of entrepreneurs' use of traffic" to the forefront. The discussion doesn't just focus on the personal grudges between the two individuals but highlights a real issue that all entrepreneurs face today: It has become increasingly profitable for founders to use their own influence to attract traffic. However, misusing this influence can lead to losing business and even crossing legal boundaries—using things that don't belong to you to gain traffic will eventually result in having to pay a heavy price.
---
Plain Language Explanation
Why do entrepreneurs now prefer to use their own influence to attract traffic?
The reason is simple: It's much more cost-effective than investing in traditional advertising. Ten years ago, a company would have to spend millions on television, outdoor ads, and other channels to reach 10 million people, with no guarantee of success. Today, the media landscape has changed dramatically. People's attention is分散 on short-video platforms and social media, making traditional advertising much more expensive. A founder who is articulate and has a distinct personality has become the most cost-effective "free advertising space." For example, Lei Jun’s product launches go viral across the internet, saving millions in marketing costs. Yu Minhong’s casual remarks about life can boost the entire Dongfang Zhenxuan brand. This is especially true in the cryptocurrency industry, where many projects lack tangible products. Whether people buy into them depends on the community’s trust in the founder. Spending $4.56 million on a lunch with Buffett or $6.2 million on a luxury banana displayed on a wall may seem foolish, but in reality, it results in billions in global exposure, making it much more profitable than advertising.
Not all traffic is profitable; it can also be a liability
Many entrepreneurs mistakenly think that appearing on trending searches or gaining followers means success. However, the same amount of exposure can lead to very different outcomes:
- Ineffective traffic: People forget quickly, and there's no real benefit.
- Effective traffic: People find your products trustworthy and you as a reliable source, leading to sales and word-of-mouth recommendations, which builds brand trust.
- Negative traffic: If you gain attention by exposing negative information about others, it can damage your reputation, making it difficult to attract customers and investors, and potentially ruining your business. It's like running a restaurant that becomes famous for arguing with its neighbors; people will think the food is poor, and no one will want to eat there.
The core rule of using traffic: The assets you use for traffic must be your own
In the past, people discussed the limits of marketing, focusing on issues like false advertising and legality. In the era of the attention economy, there’s a more fundamental rule: The content you use for promotion must be something you have the right to use. Sharing your entrepreneurial failures, mistakes, and product updates is fine. But you can’t expose others’ private information or unresolved disputes without their consent. Even if it’s not legally prohibited, you don’t have the right to use their rights to gain traffic. It’s like partnering with someone and then sharing their embarrassing stories online to gain followers; you’re essentially selling their reputation.
The bigger the company, the more careful the founder must be
When you start a company, your words may not affect much, but once you become a public figure, every statement is significant. Your clients, employees, partners, and regulators will pay attention. If you gain 1 million followers by causing a controversy, it can harm your business. Zhao Changpeng has experienced this firsthand; in the past, Binance lost over $4 billion due to anti-money laundering issues and he spent four months in prison. A founder’s actions significantly impact the company.
Credit is worth more than temporary traffic
Many entrepreneurs only focus on short-term gains, like the number of followers or views. But consider the long-term costs: Do you have the right to talk about certain things? Could your words lead to legal issues? After the hype fades, what will you have left? More followers and a better brand reputation, or nothing? Misusing traffic can be a huge loss. Remember, credit is invaluable.
Entrepreneurs should consider the bigger picture
Don’t just focus on short-term gains. Building trust with customers and partners is essential. You can’t buy trust with money. If you damage others’ reputations to gain traffic, you’ll lose both the trust and your business.