Binance CEO commented on the crypto market decline
The CEO of the largest crypto exchange Binance Changpeng Zhao commented on the price correction for Bitcoin and other digital currencies.
He believes that such fluctuations are quite usual for both the stock and crypto markets. This situation is a reflection of the usual trend with a prolonged crash.
Zhao said that securities in the stock markets also lost much of their value. This is not the first time Binance has faced such a meltdown. However, the company managed to prepare in advance and save up enough contingency funds.
Analysts also believe that the crypto market decline was caused by natural market cycles. They are quite predictable, but most experts did not expect such a dramatic price fall. According to predictions, the market is expected to stabilise in the coming weeks, but in fact the situation could get worse.
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Zhao is confident that Binance will be able to use this situation and continue its development. The company actively works in order to get licences from regulators of those countries where the exchange provides its services. Moreover, Binance CEO plans to hire more employees. He announced the opening of more than 2,000 new positions.
On the contrary, other crypto exchanges announced staffing cuts due to the crypto winter and the need to maintain profitability. Among them are such platforms as Gemini, Coinbase and Crypto.com.
Due to the uncertainty in the market, the UST stablecoin has lost its parity with the U.S. dollar. The U.S. Securities and Exchange Commission (SEC) is currently investigating this case. According to experts, this incident also had a negative impact on the crypto market situation. Investors fear that other stablecoins will suffer the fate of UST, so they are trying to protect themselves and withdraw funds from digital assets.