CZ believes crypto winter is here to stay until 2026 CZ believes crypto winter is here to stay until 2026
The Binance boss prefers to look at the positive aspects of an extended downturn, including hiring the best workers and acquiring companies for cheap.
2 min read
Updated: Jun. 17, 2022 at 3:25 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Speaking to Fortune, Binance CEO Changpeng Zhao (CZ) shared his thoughts on crypto winter and said he expects it to be a long one.
However, he added that as the losses and platform closures stack up, he prefers to focus on the positives of a market downturn. CZ said:
“I’m not debating that it is disastrous. It is bad.
But when this disaster is happening, there is also opportunity.”
Crippling crypto outflows sink token valuations
Since November 2021’s market top, over $2 trillion in capital has exited the crypto space, representing a 70% drawdown in total valuations.
Market leader Bitcoin is down 56% YTD and hovering close to the 2017 bull market top of $20,000. Analysis by Glassnode expects BTC to fall up to 64% from here, which would give a bottom price of approximately $7,500.
Meanwhile, @WatcherGuru tweeted that almost three-quarters of the top 100 projects are down by more than 90% from ATHs at current prices.
FUN FACT: 72 of the top 100 #crypto by market cap are more than 90% down from their all-time highs.
— Watcher.Guru (@WatcherGuru) June 17, 2022
According to CZ, the outlook is dire, but there is opportunity in the carnage. He said the situation is ripe to bring on board the best talent and acquire leading companies at rock bottom prices.
CZ sees opportunity in the bleakness
On Wednesday, CZ threw shade at the competition by tweeting that Binance is looking to fill 2,000 vacancies at the firm. Elaborating further, he said he wants to complete hiring by the year-end, which would increase its staff to 8,000.
Many crypto exchanges, including Coinbase, Gemini, and Crypto.com, have recently announced staff cuts to stave off the harsh trading conditions.
However, by keeping a tight reign on advertising spending, CZ implied that Binance is in a strong cash position and can hire when others are cutting numbers.
As crypto winter bites down hard, CZ described the situation as a necessary cull, in which weak projects die off, leaving only the strong, who will flourish when the good times return.
“Although it is painful for a lot of people, it weeds out the weak projects, and only the strong ones stay.
Everyone who lasts, who survives, will be stronger”
As for when that is, the Binance boss thinks the downturn could last for around four years, taking us into 2026.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Crypto.com
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.