The CEO of the world’s largest crypto exchange platform says bear markets are a normal part of market cycles and offers his thoughts on the aftereffects of Terra (LUNA) and Celsius (CEL) collapsing.
In a new interview with Bloomberg Markets and Finance, Binance co-founder and chief executive Changpeng Zhao says digital assets are displaying normal market behavior despite the latest crypto market downturn.
“I think it’s pretty normal for markets to go up and down. It’s just normal market fluctuations. We see this in stock markets too, Netflix is down 70-something percent as well, so it’s just part of normal market behavior.”
Zhao goes on to note that while the scale of the downfalls of Terra and Celsius were larger than expected, mass washouts are to be expected after long bull markets.
“To be very honest, I wouldn’t say [the collapse of Terra and Celsius were] healthy washouts. We would of course hope that the scale would be much smaller… but this is how industries work. Sometimes the washouts are pretty significant so a lot of people did get hurt.
We would have liked to avoid that, but when you have a bull market, a lot of people pile in, a lot of people are here for the short-term money, a lot of people are not very good at managing operational risk and those guys get washed out during the next bear cycle.”
Recently, Binance announced a hiring spree amid the crypto winter even though the firm’s top competitors, such as leading US-based crypto exchange Coinbase, said they’d be laying off employees.
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