Changpeng Zhao, also known as “CZ”, CEO of cryptocurrency exchange Binance, discussed why cryptocurrency projects must sustain their growth in the bear market. He said this during a live discussion at the Web Summit in Lisbon.
He stated that finding and hiring good people in a down economy is simpler. According to him, just a year ago, it was costly to hire a recent college grad with some experience with the blockchain programming language, Solidity.
Also, he noted a decline in project values, stating that any idea with a working prototype or a white paper longer than six pages was valued at $100 million as of a year ago. Right now, the pricing is undoubtedly reasonable.
What is the Future of Crypto?
According to CZ, a favorable climate has been created for mergers and acquisitions because of the cheap cost of labor and relatively inexpensive project costs.
Compared to a year ago, when it seemed like every startup was trying to launch a NFT sale, today, only the most promising firms are offering them, which makes the availability of tokens much greater.
CZ noted that crypto market cycles typically last four years, with one year of declining prices, two years of recuperation, and a final year of rising prices. This raises the possibility that the bear market may soon come to a halt.
A brief history of "#bitcoin crashed"…
Crypto is high-risk and highly volatile. Learn to manage your risks. 🙏
— CZ 🔶 Binance (@cz_binance) November 2, 2022
The Binance executive and blockchain celebrity also reaffirmed his optimism for cryptocurrency’s future value, adding that the company is a long-term investment and intends to keep working in the field for the next ten, fifty, or a hundred years.
CZ, for instance, stated that there are a disproportionately high number of people who believe in tokens rather than those who do not trust them.
In addition to that, the commercial sector has undergone significant growth over the course of the last decade or so.
However, he also warned against concluding the future based on evidence from the past. He stated,
“We are close to a year into this bear market, but I cannot predict the future because, at the end of the day, history doesn’t predict the future.”