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Binance CEO Changpeng Zhao Believes Crypto Industry Will Overcome Price Drops
“Some cryptocurrencies may drop in prices, and some projects may fail, but the industry will stay,” – this is the view of the cryptocurrency market perspectives from Changpeng Zhao, the founder and CEO of Binance, the world’s largest cryptocurrency exchange. In his pre-recorded speech for DIFC Fintech Week on June 28 to 29, he drew a parallel between the recent events at the market and the .com domain boom in early 2000s. Although the “dot com bubble” saw many companies go bust with the course of time, the domain, just as the internet itself, went on to survive. Binance CEO believes that the crypto market has found itself in a similar state. Despite the fact that some cryptocurrencies will lose their value, the market will continue to thrive.
Besides, Zhao urged to invest in bitcoin now, despite the overall market uncertainty, aiming at long-term profit. Recently bitcoin tumbled to a new 18-month low, dragging smaller tokens down with it. The sharp fall in the digital currency market was as well sparked by crypto lender Celsius freezing customer withdrawals. On July 3, the largest cryptocurrency was bound to an average of $19.100, having lost about 10% in value within the last week.
Not a Bubble That May Collapse?
In his address Changpeng Zhao assured the audience that blockchain is a proven technology and not a bubble that may pop at any moment. Blockchain enables decentralised finance (DeFi), which now includes cryptocurrencies and non-fungible tokens (NFTs). Because the technology has been around for many years now, it is going to stay, and a logical period of market decrease does not mean the end of the entire market. Zhao expressed his belief that within the next 5-10 years DeFi could become bigger than centralised finance. This serves him as an argument to invest in cryptocurrencies now.
“Many different innovations are coming into the crypto space. There are also failures in this industry, but failures are important in this industry. Failures allow us to learn from them and improve,” – Changpen Zhao, founder and CEO of Binance.
Zhao emphasised the role of blockchain in fundraising and sponsorship. According to him, DeFi provides a new, faster way to raise funds to new age entrepreneurs. Another difference, he said, is that artists can now monetise their works globally through NFTs. However, he cautioned that there are a lot of risks in the industry and warned against chasing high returns.