Changpeng Zhao, the founder and CEO of the world’s largest cryptocurrency exchange Binance, expressed his thoughts on the decline in the cryptocurrency market in a recent interview. Here are the details…
Zhao evaluated the latest state of the cryptocurrency market
Zhao currently ranks as the 35th richest person in the world, with a net worth estimated at $34.5 billion as of August 2022, according to the Bloomberg Billionaires Index. Almost all of his liquid net worth is in cryptocurrency. In fact, Zhao’s net worth was around 70 percent higher in 2021. But as the decline in the crypto market deepened, so did the CEO’s net worth.
With costs increasing around the world, investors began to withdraw their money from investments they deem risky, such as cryptocurrencies. The crypto price fell even more as investors sold their cryptocurrencies. When asked about Zhao’s thoughts on this sale, he was optimistic about the prospects for the e-currency. In an interview with Gulfnews’ Zhao, Zhao commented on the crypto decline that has also impacted his own net worth. Zhao used the following statements:
Crypto as an asset class has survived periods of uncertainty before. Each time it has returned to grow its user base, improve its technology, and increase its corporate acceptance. For investors, it’s important to remember that all investments are equally susceptible to volatility in crypto or stocks. User education is extremely important when it comes to risk management.
Zhao focuses on web3 experience
Zhao pointed out the importance of “education” for investors who want to enter the field. He thinks that investors should know what they are investing and where. He also believes that “cold wallets” are the safest way to store. Overall, Zhao has put emphasis on web3 when it comes to his plans on Binance. “At Binance, we are preparing for the Web3 era in many ways,” said Zhao. Zhao assessed that cryptocurrencies and Web3 currently have an issue with the user experience that “is a barrier to adoption”.
Despite Web3’s growing awareness and investment, most experts agree that it remains an enigma for the vast majority of consumers. CZ uses the following expressions:
Web3 development must focus on user experience to drive adoption. Web3 developers cannot assume that users will have technical experience or understanding. Currently, most people interact with crypto for the first time through token trading. It looks like token trading will continue to be the way most people interact with crypto and blockchain. The goal for the future is to develop user-friendly Dapps (decentralized applications). It is to make the transition from Web2 to Web3 application seamless for the user.
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