A lot of the leading digital assets in the market of crypto are significantly down. Yet few market participants are seen to shrug it off and stay focussed on the long game. By market cap, the top five cryptos fell 55% or over a year to date as per a report. Bitcoin and Ethereum dropped nearly 56.5 % and 68.5% respectively during this period.
Crypto investors may be reeling from the highly chaotic blowout in the history of this industry. The value of the market Through Bitcoin Payment is almost down to two-thirds in only 6 months. Bitcoin’s price has dropped 20 % alone this week.
What did the CEO of Binance comment?
CEO of Binance, Changpeng Zhao shared his thoughts regarding crypto winter. He said that he expects the crypto winter to last for a long time. But he added that there is a stacking up of losses along with the closure of platforms, he likes to stay focussed on a market downturn’s positives. He did not debate that crypto winter is disastrous. He mentioned that it is bad. When such a disaster is happening, the opportunity is also there. The worth of Binance was estimated to be nearly $300million at the start of March. Yet the company did not disclose such figures. It made this privately owned company one of the most precious entities in the world. Its CEO, CZ owning the biggest stake has a worth of $73 million. It is an estimate the CEO mentioned.
The value of the company and the CEO presumably plummeted along with the remainder of the industry. Yet Binance collecting a fee on every trade accumulated too much cash on hand for taking the downturn’s benefit. He said that they were not required to raise money. Based on his knowledge, they have a bigger budget than others in this industry. It can place Binance among those for whom this upheaval is great news. It may be painful for many people. But it weeds out all weak projects. Thus the strong ones will stay. Everyone who will last will survive and thus be stronger.
Spree of hiring
In the CEO’s view, Binance is among the ones to survive, compared to its competitor in the US, Coinbase, which declared that it will be laying off around 1100 staff, Binance is making use of the industry shakeout to hugely boost all staff numbers. They hired nearly 2000 new staff and added to the current 6000 or more employees. They wish to close them by this year’s end, offers are very reasonable due to layoffs by industries. This year he has an intention to make huge acquisitions, which will include the industry of gaming.
The company declared that it will invest around $200 million in Forbes, the business media company. This deal was yet to close. But the CEO said that the company has still a commitment to it also, and the bigger deal about Twitter is pending. The company committed to investing $500 million towards the planned purchase of Twitter by Elon Musk. They both discussed it briefly via text on Signal, the encrypted messaging application. The deal is in question now, but the CEO believes that Twitter can potentially be a big lucrative investment for his company. Twitter is the most vital free speech platform now, he also mentioned that he makes use of Twitter more than he uses Binance. He envisions having Twitter earn revenues via cryptos. This model will likely be extended to other social media. He said that he still has a belief that this industry will be dramatically changing many sectors.
The CEO mentioned that time is changing as twenty years back no one was aware of what the internet will be looking like. So after twenty years, we will be capable of sending money to other parts of the world. No one will think of crypto, they will just mention that they paid $1 for one article written in China. People will be part of the metaverse, interacting with each other and no one will think about the technology it will be all over the world.
Certainly, people will see a lot of unwinds, freezing of withdrawal, and huge silences in the next few weeks or months. The crash of the market will have a huge impact on companies or investors who made bad decisions. But remember that such downturns are usually shorter than they appear.