Co-founder and CEO of cryptocurrency exchange Binance, Chanpen Zhao (Changpeng Zhao) believe that mass market growth is inevitable. In an interview with the Crypto Globe, the businessman said that “historically a good period lasts from October to December”.
According to Zhao, the market is not in decline — this impression is due to the crushing of the analyzed periods:
“If you look at their schedule in 2018 may be noted a steady level of support at around $6,000, while in 2015 it was a $200. I look at the figures for the year. And I don’t think that is bearish period […] I always look at the long term. I don’t allow myself to sell. I always buy and hold [the assets]”.
Zhao also commented on the results of several studies, claiming that many cryptocurrency exchanges give unreliable indicators of trading volumes. He stressed that Binance actively prevent manipulation and money laundering, but it is quite a complex process:
“It is very difficult to calculate the causes of artificial volumes and to deal with them. In fact, we use many complex mechanisms to prevent this. If the exchanges themselves are doing all this to raise the volume [of trading], then it’s bad. Then, other exchanges have used the transactional model of mining, thereby encouraging similar behavior in the market. We carefully struggle with this. But it is not easy, because every time there are more sophisticated ways of manipulation”.
Zhao paid a special attention to trans-fee-mining, calling this model a “harmful”. However, he did not consider it a threat to the market:
“The volume on the exchanges this model slept […] On the law of supply and demand, the more tokens issued, the more likely it is that over time the cost will decrease. So this method is fundamentally wrong”.
Answering questions about the future of the exchange, Zhao said that Binance is actively developing, working on all promising areas, including in the niche of decentralized exchanges. The exchange also plans to devote more time to social sectors like philanthropy and education.
Zhao also podtverdil my confidence a thousandfold increase in the capitalization of cryptocurrencies. Recall that this forecast was made by him in Twitter in the context of recording Vitalik Buterin on the approximation of the value of digital assets to the maximum possible value.