In a new interview with CNBC, Binance CEO Changpeng Zhao Says The crash of the cryptocurrency market was caused by the sudden influx of speculators into the space.
“I think a bit of a reset is healthy to be very frank. Crypto has attracted a number of non-believers into the space. They are just speculators probably, and that shouldn’t happen on a large scale. When it happens on a large scale, it means that the market is overheating. Excessively and after a while, of course there will be a correction.
Usually, the markets excel in both directions. Therefore, the cryptocurrency market should only attract believers, and it should only attract people who are in it for technology, who understand how to use it, and so on.”
According to the head of Binance, the removal of weak hands caused by the Terra/LUNA crash is beneficial to the industry’s long-term prospects, as those who remain are likely to contribute to the overall growth of the crypto ecosystem.
“I think the corrections are really healthy. But because of the Terra/LUNA crash, you hurt a lot of people, but you also left out a lot of weak players in the industry. I actually think now the industry is healthier than it was in six months. [or] Nine months ago, when Bitcoin was [at] 68000 dollars. Now, we’re seeing the people who build apps reside in the industry. Industry investors now have a long-term view. I actually think the industry is much healthier now than it was when it was [trading] The highest level ever.”
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Featured Image: Shutterstock / DomCritelli / Natalia Siiatovskaia