In just 6 months, the entire crypto market capitalization was only 1/3 of its value. Currencies raced against Bitcoin, but the downtrend also brought new opportunities, like acquiring smaller companies or signing industry talent.
Recently, in an interview with Fortune magazine, the co-founder and CEO of the world’s largest cryptocurrency exchange Binance, Changpeng Zhao (CZ) shared about the current state of the crypto sector.
“There is no question that this is a disaster. It was worse. But along with that, opportunities also appear,” Zhao said and forecast this downtrend could last up to four years.
According to industry insiders, Binance is being valued at $300 million, while the top leader of the exchange has assets of up to $73 billion, a statement that CEO Zhao later called “a false figure.” structure”.
Along with the general market decline, the value of Binance and the number of assets of CZ could also plummet. However, with the profit coming from fees per transaction, the exchange has enough cash to take advantage of the opportunity during a downturn.
“We do not need to raise additional capital. As far as I know, the company has a much bigger budget than anyone else in this field,” said CZ at the Industry Expo.
That could make Binance one of the few companies to benefit from the downturn. “While this is painful for many, it also eliminates weak projects. Whoever can survive, becomes stronger.”
Increase spending instead of downsizing
In contrast to Coinbase, a rival exchange from the US that has just cut more than 1,100 employees, Binance is taking the opportunity to expand recruitment with plans to add 2,000 employees to its existing 6,000 workforce.
“We want to get this done by the end of the year. The levels required are becoming much more affordable.”
Additionally, CZ is also considering major acquisitions “this year,” possibly in the video game sector. In February, Binance announced it had invested $200 million in media company Forbes. Although the deal has not been completed, the company is still committed to going through with it.
Another, even bigger deal, is Twitter.
Cryptocurrency exchange commits to contribute $500 million with billionaire Elon Musk to buy one of the world’s most popular social networking platforms. Although the deal is still controversial, CZ believes it will be a highly profitable investment.
“It is probably the most important free speech social networking platform today. I use Twitter more than I access Binance.”
According to CZ calculations, Twitter can completely make revenue through cryptocurrency and gradually spread this way to other social networking platforms. Despite the bad news that came in a row, the Binance boss assessed that the industry has contributed to significant change in several areas.
“Twenty years ago, what did the Internet look like? 20 years from now, you can send money to UK, Latin America, China. Users will not think about crypto or the technical problems of the technology. It’s as simple as paying $1 for an article in Latin. Then everyone will be in the metaverse virtual world, interacting with each other. This field will appear everywhere,” said CZ.