Changpeng Zhao (CZ), the CEO of Binance, the largest crypto exchange in the global market according to the data provided by BTI, said in an interview with Bloomberg that he remains positive on the long-term outlook of the cryptocurrency sector.
While 2018 has been a challenging year for both large-scale corporations and emerging startups due to the steep 84.8 percent decline in valuation of the crypto market from $813 billion to $123 billion, CZ stated that people in the industry are still confident about the future of the asset class.
“2018 has been a tough year in terms of pricing for cryptocurrency and I think a lot of projects are not making out of this year, so it’s a correction year,” said CZ, adding: “I think people in the industry are still very confident of the future, so there are no worries about that.”
Binance is Not Changing its Strategy in Improving Crypto Adoption
Despite the major correction the cryptocurrency market has experienced throughout the past 12 months, CZ emphasized that the company will not alter its aggressive plans to expand and improve the existing infrastructure supporting the cryptocurrency market.
Previously, Binance chief financial officer Wei Zhou stated that fiat on-ramps or fiat exchanges are important in the early phase of cryptocurrency development to increase adoption.
Speaking to Bloomberg, CZ revealed that Binance is set to launch 10 fiat-to-cryptocurrency exchanges in 2019, having already launched one in Uganda and currently preparing to operate a fiat exchange in Singapore.
“Our strategy has not changed at all. We have launched one fiat exchange so far and we are about to launch two or three in the next month or so. Next year, we still want to build ten more fiat exchange and we’re also launching our decentralized exchange which is a very important core blockchain technology-based exchange. None of our plans change and we’re pushing very aggressively.”
The technology supporting most major cryptocurrencies and small ERC20 tokens has improved since late 2017 in terms of scalability and efficiency. Bitcoin has adopted Segregated Witness and Lightning, Ethereum is working on Plasma, Sharding, and other layer two scaling solutions, and smaller crypto assets are benefiting from the progress made by developers in the open-source developer community of decentralized projects.
On the institutional side, with the commitment of Nasdaq, the second largest stock market in the world, and Fidelity, the fourth largest asset manager in the U.S. market, the cryptocurrency sector has seen its infrastructure strengthen over the past several months.
Regardless of the volatility in the short-term price trend of cryptocurrencies, CZ noted that the industry will grow based on the progress made by builders, developers, and companies in the space that work to improve the adoption of digital assets, and in that aspect, he remains confident on the long-term outlook of the industry.
“I think price is a very strong traction for a lot of speculators. But the industry are going to grow by builders, those that build applications and the actual adoption of cryptocurrency in the long-term. There will always be speculation which will cause the price to fluctuate. I think last year, it fluctuated upwards too much and now we’re in a correction phase,” CZ added.
Beginning 2019 With a Positive Sentiment
Although the general sentiment around the cryptocurrency market depends on the price of leading cryptocurrencies like Bitcoin, as the market survives yet another major correction, there exists a strong possibility that the industry begins 2019 with a positive sentiment.
If the cryptocurrency market grinds through an 85 percent correction once again, after experiencing four corrections in the same magnitude in the past eight years, it could demonstrate to the investors in the global market that the industry has found resilience and fundamental strength.
Featured Image by Vidar Nordli-Mathisen on Unsplash