The CEO of Binance and the richest person in the world of crypto, Changpeng Zhao (CZ), recently spoke out about the hefty correction in the market. According to him, there is absolutely no need to worry too much. After all, severe crashes are the most normal thing in the world within the crypto market.
Crypto crash is nothing exceptional
In a interview with Bloomberg CZ said today that it stands by its position that severe crashes are part of “normal market behaviour”. Both stocks and cryptocurrencies go through certain cycles where either everything seems to be going up or everything is mostly going down.
He also indicates that when this bear market comes to an end, it is plausible to expect that there will be another serious crash in the long run. Corrections and crashes are simply part of the game, according to the Binance CEO.
“It is normal for markets to go up and down. We also see this in the stock markets. Netflix is also down 70%. It is part of normal market behaviour […] This is not the first bearish cycle that Binance is going through. This will be my personal third,”
Demand from crypto users remains sky-high
Despite the market correction, user demand has remained high, according to the chief executive, hence the need to be prepared. He noted that Binance will benefit from this, especially now other companies such as Coinbase and Kraken lay off a large part of their staff. That means Binance has access to a lot of new talent, according to CZ.
since the beginning of 2022, the entire crypto sector mainly in the red. In total, more than 55% of the market cap has been wiped out. The collapse was caused by several factors, including rising inflation and incidents such as the Terra (LUNA) crash. According to CZ, such meltdowns in a bear market.
This is especially painful, because especially during a bull market, when everything just seems to be going up, lots of new people pour in. They have never experienced a bear market before and in many cases are ill-prepared. CZ acknowledges that the losses from the Terra collapse were huge.
