No products in the cart.
- Latest
- Trending
ADVERTISEMENT
Chaopeng Zhao (CZ), CEO of cryptocurrency exchange giant Binance, interviewed. CNBC He argued that the market is much healthier in the current winter conditions as only crypto followers remain in the field.
He said:
“Frankly, a little reset is healthy. [] Cryptocurrencies have attracted many disbelievers in this area. They were just speculators, probably.”
In November 2021, cryptocurrency market capitalization hit a record $3 trillion, while Bitcoin reached $69,000. After the ravages of the coldest winter ever, the cryptocurrency market capitalization barely recovered him to $1 trillion as Bitcoin hit $24,000 on July 28.
CZ added:
I think the industry is healthier now than it was when Bitcoin was $68,000.
CZ mentioned Terra’s crash, which led to the collapse of the sphere’s domino effect, defeating giants such as 3AC and Celsius. But CZ tackles failures with a long-term view, he said, and such an overswing would wipe the market out of non-believers.
He said that when bitcoin was trading at around $68,000, many non-believers entered the space massively in pursuit of rapid profits.
“[Speculators entering the market] It should not be done on a large scale. When it happens on a large scale, it means the market is over, [high] hot. And after a while, of course, there will be corrections.
According to CZ, the crypto market should only attract tech believers. According to CZ, the market is getting healthier as the bear market shakes off the disbelievers. Those who know the value and understand how to use technology can enter the innovation arena today.
Since the Terra disaster pushed the market off a cliff, prominent cryptocurrency executives have made similar comments to CZ about the winter situation.
For example, Ripple CEO Brad Garlinghouse says there are over 19,000 currencies in the market, too many to create a healthy environment. He made this comment in his early June 2022, saying the winter conditions will shake off projects that don’t offer real value to the market. So when winter is over, the market is left with projects that offer solutions to real problems.
Around the same time, FTX US President Brett Harrison, Polygon CEO Mihailo Bjelic, and Circle CEO Jeremy Allaire agreed with Garlinghouse.
Traditional investor and billionaire Mark Cuban made a similar comment on the crypto winter situation on June 16th. Any business acquired without a solid business plan will disappear. He said:
“favorite [Warren] Buffett said, “When the tide goes out, you can see people swimming naked.”
On another occasion, Blockworks co-founder Jason Yanowitz posted a thread on his Twitter account describing bear market stages. His thread referred to a “sluggish” stage before the market picked up again. He said that the third phase will make people want to leave the space. Those who remain in a stagnant environment will lead to real innovation and become the real winners of cryptocurrencies.
