Binance CEO Changpeng Zhao says the FTX collapse is not going to destroy the crypto industry but it is a setback.
In a new interview with CNBC, Zhao says the FTX collapse that sent crypto markets trading downward and emboldened skeptics is only a temporary issue on the road to a healthier industry.
“This incident will set us back a bit, but then the industry will become healthier. So it’s actually better in the long run.”
CNBC asks Zhao if crypto projects are a “house of cards” and if price projections are overblown. Zhao defends the integrity of the space, saying the technology holds great promise and the crypto market will only continue to grow with innovation.
“I don’t think it’s a house of cards. They are fundamental technologies that are much better than the tools we had to transact, to raise money, to do global payments, etc. They are fundamental technologies that are much better than the tools we had before. So it’s definitely not a house of cards.
At the same time, I’m not very good at price predictions. I don’t do those things. I think there are smarter people out there that seem to have some formula to predict it and I don’t believe those things anyway. I think fundamentally, though, if you look at the industry five years, 10 years from now, the industry will be much, much bigger. I don’t know what’s going to happen to the Bitcoin price. Bitcoin is a limited supply.”
Zhao continues by saying that the market is “far from a one-coin-take-all,” with innovations occurring on different blockchains and projects, not just the two largest coins, Bitcoin (BTC) and Ethereum (ETH).
“So actually today, some of the largest businesses are not the blockchain businesses. They are actually exchanges. We’re early in the industry.”
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