Changpeng Zhao, CEO of Binance, stated in a recent interview with CNBC that the industry is actually far better off now than it was nine months ago, when Bitcoin and the top altcoins were trading at record highs.
“I honestly believe the sector is lot healthier now than it was six or nine months ago…People that are building real apps are staying in the market”.
Zhao explains that a lot of non-believers, who are probably just speculators, were drawn into the cryptocurrency market. According to the CEO of Binance, this shouldn’t have taken place on such a huge scale. Consequently, the ongoing correction was inevitable. Markets typically see an overswing in both directions, Zhao added.
Early in November, the market capitalization of all cryptocurrencies reached a high of about $3 trillion, with Bitcoin surging as high as $69,000. However, a brutal crash that was triggered by unfavorable macro conditions.
Following the high-flying Terra project’s failure, which caused market contagion, things became even worse for cryptocurrencies. A domino effect that brought down other major players like Three Arrows Capital, the implosion of one of most prominent names in industry.
Zhao believes that the cryptocurrency market should only attract believers who are interested in technology. “To be honest, a little reset is healthy,” he noted.
Now that the market has collapsed, investors are taking a long-term view.
Zhao recently downplayed the importance of Tesla’s Bitcoin U-turn, according to U.Today, saying the e-car maker’s $936 million Bitcoin sale was a drop in the bucket compared to the whole trade volume.