Binance CEO Changpeng Zhao – commonly known as CZ – believes nothing is wrong with the crypto market despite the recent meltdown. In an interview with Bloomberg, the crypto executive said it is normal for markets to go up and down. To this end, he claims the crypto market is showing normal behavior.
According to CZ, fluctuations are common in markets. He pointed out that equity markets are also facing wild price swings. He highlighted Netflix, saying the company’s stock, NFLX, is down 69.85% year to date.
Meanwhile, Binance is setting itself apart as it continues hiring while its rivals lay off staff. Explaining why Binance seems unaffected by the crypto market downturn, CZ said this is the exchange’s third bear cycle. He added that the exchange has learned to spend frugally during bull cycles.
CZ further noted that Binance is more focused on hiring than advertising. Additionally, he said the talent pool is larger now that other companies are sacking their employees. Moreover, CZ believes the bear market is ideal for merger and acquisition deals. According to him, Binance is actively looking to seize all available opportunities.
While he declined to share specifics, CZ said Binance is focusing on projects that can help people access crypto. Outside crypto, he spoke of investments in Forbes and Twitter, saying Binance is committed to following through with the deals.
Bear Markets Wash Out Short-Term Crypto Players
Commenting on the collapse of the Terra ecosystem and Celsius Network, CZ said a lot of people got hurt. CZ said bull cycles attract many short-term crypto players who enter the market hoping to make money. According to CZ, such companies are not good at managing operational risks, and bear markets wash them out.
CZ’s comments come as Celsius continues struggling to get back on its feet. The crypto lending platform halted withdrawals, swaps, and transfers on Sunday due to liquidity issues. Although Celsius has reiterated its intentions to keep its community interests first, it is yet to offer a solution.
Nexo – which is in a better financial position – offered Celsius an unsolicited acquisition offer on Monday. Despite claiming to prioritize its community’s interests, Celsius is yet to accept this offer.
After what appears to be the insolvency of @CelsiusNetwork and mindful of the repercussions for their retail investors & the crypto community, Nexo has extended a formal offer to acquire qualifying assets of @CelsiusNetwork after their withdrawal freeze. https://t.co/JFtKTHRLcY
— Nexo (@Nexo) June 13, 2022
Thus far, Celsius has hired restructuring attorneys from Akin Gump Strauss Hauer & Feld LLP, according to a WSJ report. These lawyers are tasked with advising the company on possible solutions for its financial problems.