Binance CEO Changpeng Zhao expressed that he is not concerned as crypto shows normal market behavior.
Amid so many pessimistic critics, who consider that the current Crashdown in digital assets represents the collapse of the crypto space, the CEO of Binance, Changpeng Zhao, considered this year the wealthiest human being in the crypto space, seems relaxed and without fear of losing his vast wealth.
In an interview with Bloomberg Market, CZ highlighted that fluctuations are normal behavior for both digital assets and stocks as part of market behavior and projected a likelihood of more bear markets in the future.
CZ said it is normal for markets to fluctuate and change, as is the same for the equity markets. Netflix went down at least 70%. It is part of normal market behavior and is not the first bearish cycle Binance has gone through.
Furthermore, amid the current panorama, CZ explained that his exchange got prepared for the situation by housing enough funds.
According to the CEO, despite the market correction, users are still high, hence the requirement to apply preventive procedures for what is happening. CZ noted that Binance stands to benefit, especially with other entities getting rid of their staff, a situation that has widened the talent pool.
It is worth noting that Binance has been one of the few prominent crypto entities that have not launched a layoff strategy, like Coinbase, Crypto.com, and Gemini, among others, did so a few days ago.
On the current downturn and Terra’s responsibilities, Zhao explained that Terra’s Crashdown is part of the crypto sector’s demise that comes with a bear market. It is worth considering that in May, he acknowledged the personal losses he experienced with Terra, reporting that he had USD 1.6 million in LUNA, which got diminished to USD 2,200.
He stated that such a phenomenon would likely impact more people because most entered the crypto sector during the bull cycle without knowing how to deal with operational risks. Zhao acknowledged that the losses from the Terra accident were relevant.
CZ also highlighted that Binance Holdings Ltd.’s deal to invest $200 million in Forbes is “turning around” after the publisher’s deal to go public through so-called SPAC fell through.
In the interview with Bloomberg, Zhao confirmed to the outlet that Binance still has plans to invest, although he did not explain further details on how the terms would change.
In addition, he spoke of how committed he was to investing in Twitter after the CEO of Tesla, Elon Musk, said he wanted to acquire the social network for USD 44 billion. At the time, Binance pledged to help with at least $500 million to own Twitter Inc.
Asked if he got disappointed by Musk’s apparent lack of appetite to place the complete purchase, CZ replied that he was disappointed a little bit because the company was hoping to contribute to Twitter in some way.
By: Jenson Nuñez