It is Changpeng Zhao (CZ), CEO and creator of prominent cryptocurrency exchange Binance, who feels that a sequence of events that knocked roughly $2 trillion off the crypto market has made cryptocurrencies “far healthier.”
While the crisis harmed investors, CZ argued that it was beneficial for the sector as a whole.
As a result of the Terra LUNA accident, many individuals have been harmed.” However, it also eliminates many of the industry’s weaker companies. When Bitcoin hit $68,000, “I believe the industry is far stronger today than it was [six to nine months ago],” he said.
The Binance CEO went on to discuss the current state of crypto regulation in the US. Zhu said that the SEC and the Justice Department are seeking to exert too much control over the crypto market, which is not in the best interest of the crypto community. Power disputes, according to CZ, may lead to a variety of “issues in diverse ways.”
The crypto millionaire pointed out that in other nations, cryptocurrencies are handled by a single government agency. Cryptocurrencies may now be accepted in these countries, rather than being banned as they had previously been.
El Salvador and Central Africa are examples of nations that have accepted Bitcoin as legal money. Cryptocurrency regulations have been introduced in other nations, such as Dubai. According to CZ, these tactics are “very beneficial” to the sector.
The failure of several crypto initiatives has also been cited by CZ as a contributing cause to the current strength of the crypto industry. A number of crypto enterprises, particularly those that lend money, went bankrupt this year.
Stablecoin UST, the Terra algorithmic stable currency, lost its 1:1 peg to the US dollar in May and fell to zero as a result, bringing down the whole Terra system with it. It wasn’t long until CZ weighed in on the network’s design issue and said that the tokenomics creators needed to have their brains examined.
Terra-exposed firms including Three Arrows Capital and Anchor Protocol had their finances destabilized, and a few of them went bankrupt.
CZ thinks that, despite the demise of several crypto startups, new applications are being developed by other organizations that might lead to greater acceptance of cryptocurrency. Aside from the fact that investors are now more concerned about the long-term rather than short-term profits,