Binance CEO Changpeng Zhao is offering his take on the state of the crypto market.
In a new interview with Forbes, Zhao compares the current crypto landscape to the stock market, and says he expects the price of Bitcoin to recover much faster than the Nasdaq did when the dotcom bubble burst.
“The crypto industry will stay. I think that’s not going away. The blockchain technology will stay. Adoption will just increase over time. This is very different than the Nasdaq. The Nasdaq is much bigger volume. Their market cap is much bigger. So when you have a big ship that goes under and then coming back, it moves slower. So it takes a long time.
I think things will happen much faster in the crypto space. So I’m very confident about it.”
Zhao says he’s also encouraged by a wave of positive news in the space in recent months. Sooner or later he thinks the price of Bitcoin will match the true value in the space, although he’s hesitant to say when.
“Recently, there’s been a lot of positive news for crypto. The Nasdaq’s running an exchange. NYSE is running a crypto exchange. They’re listing futures contracts. There’s a lot of new developments, a lot of new companies, a lot of new people joining in this industry.
So I’ve only seen positive stuff happening, but the price keeps dropping for the last while. So, it doesn’t make sense to me. But what I know for certain is price will always catch up to value. So right now they’re diverging, which is kind of weird. But I’m very confident that sooner or later you’ll converge back.”