Binance CEO: Crypto Market Still in Good Position, Real Crypto Volume Remains Unknown

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by Daria Rud · 3 min read
Binance CEO: Crypto Market Still in Good Position, Real Crypto Volume Remains Unknown
Photo: Trung Kien / Flickr

According to Binance CEO Changpeng Zhao, “sooner or later”, the market will see the next bull run, and arrival of institutions may become its trigger.

Currently, many investors are concerned by the market slump which results in low trade volumes. However, the CEO of Binance, the world’s largest cryptocurrency exchange, is not worried about the current market trends. Changpeng Zhao believes that “sooner or later”, something will trigger a bull run.

Speaking on CNBC Africa’s “Crypto Trader” show, Changpeng Zhao expressed his rather positive attitude towards the current market situation. When Ran NeuNer, CEO of OnChain Capital and “Crypto Trader”, asked what catalysts could be significators of the market’s next bull run, Changpeng Zhao said:

“It is a tough question, I don’t really know how to predict which catalyst will be the trigger.”

Moreover, Zhao said that the real trading volume remains unknown:

“What I’ve heard is the OTC market is at least as large as the live recorded volumes [on exchanges]. So that is at least 50 percent of volumes that is not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes.”

The CEO of Binance explained that the current cooling down of the ICO market is not a bad sign, as the market is still maturing. And many projects are now focused on delivering actual products, services, and tokens, with a view to attract investors. The arrival of institutions “may be a really strong trigger,” according to Zhao.

In September of this year, Binance CEO shared his optimistic view of the crypto market as well. He stated that the crypto market will grow 1000 times and more.

Binance’s Formula for Success

Over the past 11 months, the cryptocurrency market has lost more than 70 percent of its valuation, which is the fourth biggest correction in its 10-year history. Currently, the volume of Binance is down nearly 90 percent since January because of the correction and partially because of the high level of stability demonstrated by Bitcoin over the past three months.

However, the number of active users and the amount of Bitcoin deposits that Binance holds are steadily increasing. Recently, Binance surpassed giants like OKEx and Huobi in terms of trading volume, number of active users, web visitors and also API volume.

Zhao said:

“Compared to January [of 2018], we are probably down 90 percent. So we only have one-tenth of the trading volume compared to what we had in January. But, compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business.”

He furher added:

“Right now we are still signing up a steady amount of new users every day so from what we are seeing, it’s very healthy actually. The number of new users and the amount of crypto we hold are increasing very steadily. So if you look our cold wallets, the amount of BTC we hold, we have just seen an increase in people depositing Bitcoin to our exchange.”

According to Zhao, “there isn’t a secret recipe”. Binance “may have gotten lucky in its early days”, and this luck was complemented by the exchange’ decent product and customer service staff.

Yesterday, Binance announced the research of a new analytical division, Binance Research, set to prepare institutional-grade research reports to increase transparency and improve the quality of information within the cryptocurrency space.

Altcoin News, Binance, Bitcoin News, Cryptocurrency news, News
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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