By Richard Hines
Changpeng Zhao, CEO of Binance, acknowledges that the two significant collapses that occurred this year would send the industry behind for years, but he is still optimistic about a speedy comeback for the cryptocurrency sector.
CZ Remains Bullish Amidst Crypto Winter
On Wednesday, CZ said that although the FTX collapse had a significant impact on the market and delayed recovery by a few years, the market will rebound more quickly than the widely believed five to seven years and would be stronger and more resilient.
Meanwhile, signs of a revival in the cryptocurrency market have been seen, with Bitcoin and Ethereum trading pretty well in the previous 24 hours.
Some well-known members of the cryptocurrency community, such as the Co-Founder of Three Arrows Capital Su Zhu, hypothesized that this crash may result in a market run lasting more than seven years before the market recovers. He also stated that if it gets worse, the market could very well experience a depression lasting a decade.
Su Zhu has demonstrated a high degree of cooperation since the 3AC collapse in June by attending meetings with authorities and adhering to their instructions. At the time of writing, Su Zhu resides in the Arab Emirates, and also intends to start a new firm that deals with trading cryptocurrency assets and traditional assets.
CZ admitted that the crash will throw the crypto market backwards, but it does not believe it would take a long time for the industry to recover. He believes that it will not only heal but will also grow stronger and more resilient; stating, setbacks like these happen all the time with new industries.
Crypto Recovery Fund Project
In light of the FTX meltdown, CZ also stated his plan to establish a crypto recovery fund to assist enterprises on the verge of liquidation in recovering. More information on this initiative has not been released; however, companies that feel they may require this assistance are encouraged to contact Binance Labs for more information.
The cryptocurrency market showed indications of recovery when whales began buying into the dip; Ethereum saw over $1 billion in asset purchases and a 6% gain in price. Whales also acquired other coins such as Bitcoin, Shiba Inu, XRP, Dogecoin, and a few more.