Changpeng Zhao (CZ), CEO of Binance says 2018 is a ‘correction year’ for cryptocurrencies. He also expressed being optimistic of the crypto industry in a Bloomberg interview published on December 19.
Speaking to Bloomberg, CZ said,
“2018 has been a tough year in terms of the pricing for the cryptocurrency, and I think we see a lot of projects not making it this year, so it’s a correction year.”
CZ also noted that ‘price is a very strong attraction’ for speculators, and the crypto industry is very much growing thanks to builders who make applications and ‘real use cases’ that drive the further adoption of cryptocurrency.
In traditional finance, a market correction is a reversal of at least 10 percent in the value of a stock, commodity, bond, or index. The reversal’s direction is generally negative, as a correction usually halts an overvalued item’s upward trend. A stock’s value can sometimes rise for no reason, and investors will invest in it hoping for profit as the trend continues.
Buying slows down gradually, and investors cash in their profits. If such stock were to fall 10 percent or more from its highest point and once the sell-off begins, stock return to a more realistic value, and it is termed as a correction.
When asked about how the price correction has affected Binance’s plans and growth, Zhao said that Binance launched one fiat exchange, and have plans to launch two or three fiat exchanges in the next month or so, and ten more fiat exchanges in 2019.
Changpeng Zhao, referring to the growth of Binance said, “None of our plans changed, we are still pushing forward very aggressively.”
CZ also said that clarity is an issue that is affecting the crypto industry, and there is a need for awareness of the cryptocurrency and regulations involved with it. Many countries are still not approving the digital asset. There is a sense of urgency of innovative projects that will promote the growth of an industry.
However, Binance is ambitious about its new developments, and are optimistic about regulation in cryptocurrency, which will bring positive changes in the crypto market.
Changpeng Zhao finished up the interview on an optimistic note, saying “It’s just one year. I have been in this situation before and I’m very confident that the same turnout is going to happen again, so I’m very confident in the industry.”