Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, pointed out that despite the rise of the cryptocurrency bull market led by Bitcoin last year, he believes that the current state of the cryptocurrency industry is actually more ideal. .
Changpeng Zhao said in an interview with CNBC:
In fact, I think the industry is much healthier now than it was 6, 9 months ago…because the people who are building real apps are staying in the industry.
Changpeng Zhao explained that cryptocurrencies have attracted many “non-believers” some time ago, but they are likely just speculators. In his view, this situation should not occur on a large scale, so a continuous market correction is inevitable. “The market usually moves in both directions,” he added.
Bitcoin surged to an all-time high of $69,000 in November last year, and the overall cryptocurrency market capitalization totaled $3 trillion, but the unfavorable macroeconomic backdrop caused Bitcoin to plummet, and then it was further frustrated by the Terra crash. The market lost blood and eventually triggered a domino effect, and cryptocurrency companies such as Three Arrows Capital, Celsius, and Voyager fell.
Changpeng Zhao is convinced that the cryptocurrency market should attract more believers who are keen on this technology, and now that the market is “slightly” reshuffled, the industry can develop in a more healthy and orderly manner.
Earlier this month, Edward Dowd, a former managing director of BlackRock, also said that the cryptocurrency market is in a cold winter, and only “strong” digital assets will survive, while worthless digital assets will disappear to zero. He believes that Bitcoin belongs to the former, thanks to its underlying technology, transparency and the degree of freedom it provides.