Breaking: CZ Says Luna Collapse ‘Very Different’ From ‘Ponzi’ FTX, Here’s Why
CZ Comments On FTX Collapse: CZ made some interesting comments on the future of crypto at the Binance meet up Athens on Friday. The Binance CEO compared the evolution of the crypto ecosystem with the development of the internet over last few decades. He said that when he entered the market, it was not about any particular crypto but it was about the new technology for money.
CZ said Binance is not really focused on profit making but inclined to sustainable growth. On the question of whether Bitcoin (BTC) will hit $1 million, he said, “anything can happen.” The potential size of a new market can not be compared with the size of an existing market, he added. The Binance CEO expects crypto market recovery in 2023 after the negative events that happened in 2022. The industry is now healthier compared to an year ago, he stated.
Also Read: Popular Analyst Predicts Bitcoin (BTC) Price Risks Fall To $10,000
‘FTX Meltdown Different From Luna Collapse’
The Binance CEO said the FTX management lied about not taking user money, saying it was a sort of a Ponzi scheme. He said all industries go through ups and downs in early phase. All the new industries have successful and failed projects, he explained. On the flip side, CZ said the Terra Luna project was mismanaged similar to the Lehman brothers. He was speaking at a fire side chat at the Binance Meet-up Athens 2022.
“The Terra Luna project was mismanaged like the Lehman brothers. The Luna founders did not walk away with lot of money after it collapsed. It fell like a chain of events in a domino effect.”
How Long Will The Bear Market Last
Speaking about the current state of crypto, CZ said there is no single reason for the market sentiment in a mass market environment like crypto. He added that the crypto bear market could drag on to more period based on market history. “We are just over the 1 year mark through the bear run.” When asked how far is the market from mass adoption, he said there are two components to evaluate it. The mass adoption will depend on the growth at which more people start to hold cryptocurrencies along with the share of crypto in the net worth of those individuals, he added.
CZ predicted that over the coming years, crypto adoption could see a pattern of exponential increase. However, he felt slow growth would be better considering the regulatory resistance and fear.
“Since crypto is disruptive and powerful, we may want to grow a bit slower.”
He said smoother approvals for crypto licensing is not necessarily a prerequisite for faster crypto adoption. CZ took the example of Venezuela, where the licensing is not so liberal but adoption is very high. The governments should look to work on regulation as there is no stopping the adoption, he suggested. Speaking about institutional adoption, he said that in five to ten years, El Salvador will be in a great position with respect to their Bitcoin holdings. He indicated that the holdings might not make much sense at the current prices but they will be of great value in future.
Also Read: Kraken CEO Calls Binance ‘Proof Of Reserves’ Pointless, Here’s Why
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
