Binance’s CZ says crypto is the ‘only stable thing’ in this financial environment
Cryptocurrency is “the only stable thing” right now as volatility and financial uncertainty continue to roil the markets, according to the head of crypto exchange Binance.
Speaking at the Web Summit conference in Lisbon on Tuesday night, Binance CEO Changpeng “CZ” Zhao doubled down on his bullish view on crypto – despite major coins losing large chunks of their value in 2022.
“Crypto is probably the only stable thing in this very dynamic environment,” he said. “Yes, prices are volatile, but if you look at the technology, if you look at the fundamentals of cryptocurrencies – limited supply, nothing has changed. That’s the most stable thing, technology-wise, in this whole turmoil.”
Bitcoin has become less volatile in recent months, hovering around the $20,000 mark. However, it is still a long way from last November, when it hit a record high of $69,000. So far this year, the cryptocurrency has lost more than half of its value, while other popular alternatives such as Ethereum and Binance Coin have also suffered heavy losses.
The cryptocurrency revaluation, often referred to as the “crypto winter,” has wiped $2 trillion off the market this year, triggering a major pullback from venture capital investors who poured money into startups in the sector last year.
TerraUSD, a popular stablecoin, sent shockwaves through the cryptocurrency market in May when it collapsed not long after passing a market cap of $18 billion. Its spectacular demise led to concern for other stablecoins, and crypto in general.
However, CZ claimed on Tuesday that fluctuating cryptocurrency prices were driven by the macroeconomic environment — and that it is actually “the world [that] is not stable”, unlike the cryptocurrencies themselves.
Uncertainty over the state of the global economy has sent both traditional and crypto markets on a wild ride this year. Tech stocks have been particularly hard hit, with Amazon falling below its $1 trillion valuation for the first time this week since reaching the milestone.
Binance was among the companies that backed Elon Musk’s $44 billion takeover of Twitter, giving $500 million to help the Tesla boss close the deal.
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