Changpeng Zhao (CZ), CEO of the world’s largest crypto exchange Binance, shared his views on the future of the market. He also compared the FTX and LUNA crashes. CZ made some interesting comments about the future of cryptocurrencies at the Binance meet in Athens on Friday.
The industry is now healthier than a year ago, according to CZ
Binance CEO compared the evolution of the crypto ecosystem to the evolution of the internet over the past few decades. When it hit the market, he said it wasn’t about a specific crypto, it was about new technology for money. CZ noted that Binance is not really focused on making a profit. However, he stated that he is inclined to a sustainable growth.
A question from the attendees to CZ was whether Bitcoin (BTC) would reach $1 million. “Anything can happen,” CZ replied. He added that the potential size of a new market cannot be compared to the size of an existing market. Binance CEO expects the crypto market to recover in 2023 after negative events in 2022. He also emphasizes that the industry is now healthier than it was a year ago.
Binance CEO: FTX and Luna crashes are different
Meanwhile, Changpeng Zhao said that FTX management is a kind of pyramid scheme. He noted that FTX lied about not taking the user money. CZ stated that all industries experience ups and downs at an early stage. All new industries have successful and failed projects, he explained. On the other hand, CZ said that the Terra (LUNA) project was mismanaged like Lehman Brothers. In this context, Binance CEO used the following statements:
The Terra Luna project, like Lehman Brothers, was mismanaged. The founders of Luna didn’t walk away with a lot of money after it crashed. It fell like a chain of events in a domino effect.
How long will the bear market last?
cryptocoin.com As we reported, CZ also shared his views on the current state of crypto. He said that in a mass market environment like crypto, there is no single cause of market sentiment. He added that the crypto bear market could continue for a longer period of time depending on the market history. When asked how far the market is from mass adoption, he stated that there are two components to assess this. He underlined that mass adoption will depend on the growth as more people start holding cryptocurrencies and the share of crypto in these individuals’ net worth.
Changpeng Zhao predicts that crypto adoption will likely see an exponential increase pattern in the coming years. But he feels slow growth would be better given regulatory resistance and fear.
He said that smoother approvals for crypto licensing are not necessarily a prerequisite for faster crypto adoption. CZ gave the example of Venezuela, where licensing is not very liberal but adoption is very high. He suggested that governments should look into working on regulation as there is nothing to stop adoption. Talking about institutional adoption, he said that in five to ten years, El Salvador will be in a great position for Bitcoin holdings. He stated that at current prices the shares don’t make much sense, but they will be very valuable in the future.
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