Binance CEO Changpeng ‘CZ’ Zhao expressed his doubts over whether or not the 2018’s crypto correction phase has ended.
Speaking to Bloomberg, CZ explained that crypto – regarding valuation – is a field of speculators and its volatility should not come as a surprise. In the same breath, the blockchain entrepreneur brought attention to things that do matter to the crypto space in a longer term, i.e., killer applications.
“I think the price is a powerful attraction for a lot of speculators,” said CZ. “But the field is going to grow by builders, the guys who build applications and adds to the adoption of cryptocurrencies in the long-term.”
The 2017’s intense crypto euphoria had shot the value of almost every crypto asset to the moon, including the top digital currency Bitcoin, which established an all-time high near $20,000. People also invested their crypto and fiat savings in a series of new blockchain projects that promised to “revolutionize” the crypto space with their s0-called killer apps.
However, as reports suggest, a majority of these projects failed to build even an alpha version of their ambitious plans, eventually draining investors’ millions worth of cryptocurrencies and fiat money into nothing. The result can be seen in the way the crypto market has bled throughout this year, which has also led many to say that that it is dying.
But CZ thinks otherwise. He pointed out that the crypto space will likely survive because of the presence of technologists who are building user-friendly applications.
“That’s happening regardless of where the price moves,” he added.
The crypto market space, meanwhile, is looking at a potential bottom formation after recovering from approx $100 billion to $128 billion within a week, according to CoinMarketCap.com. Almost all the top coins, including Bitcoin, Ethereum and the most ruptured Bitcoin Cash are promising extended upside recoveries in unison.
The technical metrics put cryptos in an oversold region, indicating that the upside action is nothing but a knee-jerk reaction of traders exiting their shorts. Bitcoin, the supposed-locomotive of the crypto market, expects to form a double bottom during the next wave of selling which, according to Bloomberg, could even see a crash towards $1,500.
It somewhat falls in line with what CZ has said about the crypto market. But again, he has shown his optimism for the year 2019. The entrepreneur is writing it on the wall by announcing that Binance will launch 10 more fiat-enabled crypto exchanges across the world.
“None of our plans changed, we are still pushing forward very aggressively,” CZ confirmed.
Featured image from Youtube/Binance.