Bitcoin Ethereum, Cardano or Dogecoin, cryptos are facing a historic crisis. Financial markets are upset and investors are not reassured. But in a group, there are always optimists. Changpeng Zhao falls into this category and keeps faith in cryptocurrencies. For him, there is no doubt to have since the current market correction is normal.
Changpeng Zhao and cryptocurrencies
Cryptocurrencies are complex and difficult to understand. Although promising, they are both a source of gains and losses. Indeed, a crypto investment requires prior knowledge of the sector. Unfortunately, some only see the positive side and panic as soon as the trend changes. Many people are wary of crypto assets, even worse since the markets collapsed.
However, even before the crypto crisis, some financial institutions already feared the effect of cryptocurrencies. Indeed, the latter see the potential of these assets and prefer to stop their momentum before it is too late. However, bad opinions do not discourage everyone. Among the staunch supporters of cryptocurrencies, some are sticking to their guns and claim that the market recovery will take place.
Changpeng Zhao is one of those people who remains optimistic regardless of market trends. In a June 16 interview on Bloomberg , the CEO of Binance says he is in no way concerned. For him, the current market correction is normal. So he doesn't see why he should worry. Crypto is a volatile industry that is always on the move. He even thinks that the markets will continue to fall and despite this, he remains firm in his resolve.
Since buying his first bitcoins in 2014, Changpeng Zhao has been a firm believer in the potential of cryptocurrencies. This is one of the reasons that push him to create his own crypto exchange platform. The collapse of crypto assets is a blow to crypto-related businesses. To make up for the losses, some of them were forced to readjust their operations. The crypto billionaire says his company is prepared for the situation and has earmarked funds.
Increase in requests despite transactions in the red
Cryptos fall but users continue their operations. According to reports from the executive, demands are still going strong despite a continued downtrend. Cryptography is a sector with great potential. It is easy to understand that investors are continuing their operations. Still according to him, we must prepare for what will follow because the trend does not seem to decrease.
Since the beginning of the year, the cryptocurrency lights have been red. Despite small recoveries from time to time, cryptos have not yet found the catalyst that will allow them to get out of this situation. The crypto market has lost over 55% of its market capitalization and inflation has been raging since the crash of the LUNA ecosystem . For Changpeng Zhao, this incident is the basis for the crypto wipeout that accompanies bear markets.
Binance CEO thinks the situation will be critical for a high number of people. Why ? Because many people entered the crypto industry when the markets were positive. Many of them did not foresee the reversal of the trend. As a result, many investors do not know how to react to the current correction and the down cycle that is brewing.
Terra's crash resulted in many casualties. For seasoned investors like Changpeng Zhao, the current market correction is normal and nothing to worry about. An investment is not only made during the glory days. As a result, he has provided alternatives in case this situation arises. He also said bitcoin withdrawals are temporarily halted. However, the platform will continue to operate. The most affected will undoubtedly be Sunday investors. This will be the consequence of the lack of preparation and knowledge of the sector.
Source : Finbold