Cryptocurrency has experienced a significant decline. Bitcoin, the most reputable cryptocurrency, has fallen from grace because its price fell from $60,000 to an extremely low $20,000. The geopolitical tension between Russia and Ukraine is also influencing the cryptocurrency market.
While the collapse of the cryptocurrency industry and the 70% decline in Bitcoin and Ethereum prices since record highs, one of the most prominent entrepreneurs of our generation showed his positivity towards the market. The CEO of Binance, Changpeng Zhao, claimed that cryptocurrencies are the most stable item in the current technologically unstable environment.
Continue reading as we delve into CZ’s latest statement in detail.
A Lot Has Happened Over The Year
The cryptocurrency market has been in a bearish trend for the past year, with most coin prices down over 70% from their all-time highs. However, despite the present bear market, Changpeng Zhao, CEO of Binance, thinks that cryptocurrencies are the only solid thing in this volatile phase.
The comment came from CZ at the Web Summit in Lisbon. He continued that innovation in the industry is on the rise, despite the market collapse. He stated, “if you look at the technologies, the fundamentals behind cryptocurrencies, finite supply, nothing really has changed. It has emerged as the most technologically steady item in this chaotic environment.
According to the CEO of cryptocurrency exchange Binance, in this period of market volatility and economic unpredictability, cryptocurrency is “the only constant thing.” Despite major coins losing significant amounts of their value in 2022, Binance CEO Changpeng “CZ” Zhao reiterated his bullish views on cryptocurrencies in a speech on Tuesday night at the Web Summit conference in Lisbon.
In this very changing world, he claimed, “Crypto is perhaps the only steady thing.” “Yes, prices fluctuate, but if you look just at technology, the principles of cryptocurrencies—limited supply—changed. So nothing’s In this technologically unstable environment; it is the most stable thing.
More On The Crypto Regulation?
If you think the speech ended on a strong future for the crypto market, that’s not all! The CEO also discussed the state of cryptocurrency regulation.
Recently, licenses were obtained by Binance in several nations, including Abu Dhabi, Cyprus, Kazakhstan, and New Zealand. He praised the intelligence of regulators in numerous nations.
He further added, American regulators do a good job. For example, American cryptocurrency exchanges can automatically and without user input remove money from a user’s bank account each month. But, unfortunately, we don’t receive banking support like in other regions.
He did, however, note that American regulations limit the things cryptocurrency exchanges can provide to their customers. He lamented that just a few platforms are authorized to offer services like derivatives.
Binance Has Been Investing!
Binance has revealed a $500 million investment in Elon Musk’s Twitter takeover. CZ stated that he invests in Elon Musk for free expression when questioned why he did so. “We want to be tremendously supportive of free speech,” he continued. Binance’s mission is to help improve financial freedom. And free expression takes precedence above financial freedom.”
In recent months, Bitcoin has grown volatile, hovering around the $20,000 mark. However, this is still a long cry from the all-time high rate of $69,000 set in November. So, this year, the value of the cryptocurrency has dropped more than half its value, while popular alternatives such as Binance and Ethereum Coin have also experienced significant losses.
The $2 trillion market loss caused by this year’s cryptocurrency revaluation, popularly known as the “Crypto Winter,” has caused a significant reduction in venture capital investment that was previously flooding the market with funds for firms in the area.
In May, the collapse of TerraUSD, a well-known stablecoin, stunned the cryptocurrency world after it had surpassed a market valuation of $18 billion. Concerns regarding other stablecoins, and crypto, were raised in the wake of its stunning collapse.
Earlier this month, CZ countered that the macroeconomic climate, not cryptocurrencies themselves, was the primary cause of fluctuating cryptocurrency prices. It is actually “the world that is not stable.”
Binance’s Role In Elon’s Twitter Acquisition
This year has been a tumultuous ride for both traditional and cryptocurrency markets due to uncertainty regarding the condition of the global economy. With Amazon falling less than its $1 trillion value for the first moment this week since breaking the milestone, tech companies have been struck particularly hard.
Elon Musk’s $44 billion acquisition of Twitter was supported by several businesses, including Binance, which gave the Tesla CEO $500 million to complete the acquisition.
Zhao said that Binance’s $500 million investment in Elon Musk’s acquisition of Twitter was undertaken in the service of free speech. “We want to be very pro-free speech, and Binance’s objective is to help increase the freedom of money,” he declared. The right to free speech comes before the right to free money.
To this, Musk further added that “It is a hard man for me to foresee,” he said, noting that he learned about Musk’s proposal to provide an $8 monthly fee for Twitter verification “the same time as you were, which was only about 20 minutes ago.”
With Elon in control, “I think that the speed with new features coming out will be much faster,” Zhao continued, adding the caveat that “Not all of these will stick.” But, he remarked, “I think it’s safe to say that the bulk of them won’t stick.” But you discover the remaining 10% of features that will last by describing several new features.
Whether the much-awaited inclusion of DOGE to the ecosystem will be among the features that stick, or if it will even get to the point of being hurled against the walls in the first place, CZ remained mum.
From Market Positivity To Investments – What’s In It For The Investors?
While Binance seems to have some real-world vision in modifying the crypto environment, the statement alone won’t change the current market. The crypto winter is undergoing a harsh crypto winter, and only positive news, paired with some intense action, could upturn the market.