Binance CEO speaks about the benefits of bear cycles

Changpeng Zhao believes that the industry is still at an early stage of development and is not yet saturated

22.09.2022 - 12:30

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What’s new? Changpeng Zhao, CEO of cryptocurrency exchange Binance, said that bear cycles are good for cryptocurrencies. During the Mainnet conference, as reported in Decrypt, Zhao advised investors not to use the value of tokens as an assessment of the work of the entire industry. He also added that price corrections, which occur every four years, are a healthy sign that will positively impact the crypto sphere in the long run.

Decrypt’s material

What else did the chief of Binance add? Zhao suggested that people pay attention to the number of users buying and using cryptocurrency, as well as the number of different blockchain projects. He also voiced the opinion that the cryptocurrency industry is still at an early stage of development and it is still “not in a saturated market.”

Among other things, the exchange’s head is optimistic about the regulation of the sphere of digital assets. However, he noted that some regulators, especially in the United States, tried to incorporate cryptocurrencies into the existing financial system, that is, to equate them to securities or commodities.

According to Zhao, governments should create a separate category for blockchain-based assets. He believes that cryptocurrencies themselves represent a new class of financial instruments.

Earlier, Binance CEO said that the European Union's Markets in Crypto-Assets Regulation (MiCA) would become a “global regulatory standard copied around the world.” He also backed the White House’s vision for regulating cryptocurrencies. Zhao is confident that government decisions “will bring much-needed consistency and clarity vs the current patchwork of state laws and regulations that govern this space.”

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