The 44-year-old Binance CEO is as bullish as ever, despite losing more money than anyone else in history. CZ reveals 3 reasons why he is confident that the market can make a comeback.
The bear market is not the first and will not be the last, according to Binance CZ
Zhao remains positive about the future of the industry, despite the personal finances of the crypto collapse. Binance CEO has something to say about it:
I am aware that the current market situation can be uncomfortable and scary for many people, especially those new to crypto. However, if we take a longer view, Bitcoin was $2000 when Binance first started. It’s still $20,000 today. That’s still 10x better than a few years ago. Markets go through cycles. This isn’t the first time, and it won’t be the last either.
Right now, the wind is blowing away from the sails of the crypto markets. Bitcoin has lost more than 70% from the ATH level. Thus, he refuted the idea that it would be a hedge against inflation. In May, the collapse of Terra Luna sparked volatility in the broader crypto ecosystem. However, it caused the bankruptcy of leading hedge funds such as Three Arrows Capital. However, Zhao says he is not surprised by these. In fact, he states that this is precisely when the best companies survive and thrive.
Booms and dips in the market are not uncommon. They are part of financial market cycles. The decline in the market will weed out the excesses and the return of valuations to more sustainable levels can be seen as positive. Firms with a healthy balance sheet will be better able to withstand the market downturn as they continue to develop their products, build their businesses and come out stronger.
Binance has big plans
Zhao is confident that Binance is one of the companies that can come out of the crypto winter stronger than ever.
Binance is the world’s largest cryptocurrency exchange and has taken this opportunity to increase its recruitment. In fact, Binance plans to hire more than 2,000 new employees, while many other crypto companies such as rival exchanges Coinbase and Crypto.com are contracting. CZ, on the other hand, says that Binance turns these periods into opportunities:
We see this moment as an opportunity to attract and bring in some of the best talent in the market. Cooler markets allow value-conscious teams like Binance to focus on building the industry.
It’s not just people that Binance invests in. The company also plans to take advantage of its strong financing and lower price tags for potential acquisitions. In CZ’s words:
During the bull market, Binance was deliberately conservative in our spending. We were preparing for this bear market. Valuations were wildly high. Now is the perfect time for us to be more aggressive. We will be making much more investments and mergers and acquisitions.
Binance seeks projects to lead global crypto adoption
As you follow on Kriptokoin.com, Binance is no stranger to deals with other crypto brands and has a history of acquiring leading companies in the space such as CoinMarketCap in 2020 and Trustwallet in 2021. Zhao shares that they are looking for new projects in terms of investment:
We want to invest in strong projects and companies both inside and beyond the crypto market. The deals and opportunities we invest in are aligned with our long-term values. We do not want to invest in certain sectors. Instead, we are looking for projects and companies that can help facilitate mass crypto adoption globally.
Meanwhile, Zhao also emphasizes that he wants to invest in companies that create real benefits for customers:
Personally, I like to see innovative projects focused on benefiting users. These are projects that I believe can do very well in the long run. By putting the interests of users at the center of the products, these projects help bring crypto to the masses.
Increasing utility of the ecosystem and NFTs
Finally, Zhao said that with more use cases, crypto will eventually become more stable.
Volatility is a function of market size. Projects with smaller market capitalization tend to be more volatile. When an asset has utility value (ie, many people use it as a tool), volatility will be less of a concern. This is the direction of digital assets, including cryptocurrencies. NFTs, etc. should be targeted.
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