Binance CEO Changpeng Zhao dismissed any concerns about the crypto market correction, noting that it is a normal occurrence.
Speaking during an interview on Bloomberg Markets: European Open on June 16, Zhao maintained that fluctuations are common for crypto and stocks as part of market behavior while projecting that there is a likelihood of more bear markets in the future.
“It is normal for markets to go up and down. We see this in stock markets too. Netflix was also down 70%. This is part of normal market behavior <…> This is not the first bear cycle that Binance is going through. This will be my third staff,” he said.
Following Zhao’s sentiment that the current market conditions are normal, he revealed that the cryptocurrency exchange is already prepared for the situation by setting aside funds. This comes at a time when several crypto-related businesses have been hit hard and forced to readjust their operations, with some companies freezing hiring or even laying off employees.
User demand remains high
According to the leader, despite the market correction, user demands remained high, hence the need to be prepared. He noted that Binance is poised to take advantage, especially with other companies laying off staff, a situation that has widened the talent pool.
Notably, since the start of 2022, the cryptocurrency sector has traded mostly in the red zone, wiping out over 55% of market capitalization. The collapse was triggered by several factors, including soaring inflation and high-profile incidents like the Terra (LUNA) crash.
In that line, Zhao noted that Terra’s crash is part of the crypto sector wipeout that comes with a bear market.
He claimed that such incidents would likely impact more people, as a majority of them entered the cryptocurrency industry during the bull cycle without knowing how to manage operational risks. Mr. Zhao acknowledged that the losses related to the Terra crash were significant.
Against this backdrop, Binance said on June 13 that it was temporarily halting bitcoin withdrawals, citing that a “minted transaction” had caused the delay.