The cryptocurrency market could be at least 50% bigger than is being recorded, argues Binance chief…
One of the leading cryptocurrency exchanges is Binance, a company headed up by its CEO, Changpeng Zhao (who goes by the name of CZ). In a new interview with CNBC Crypto Trader, CZ has been chatting about the state of the cryptocurrency market. And he’s upbeat, despite the difficulties of the past year.
After all, last December, Bitcoin’s price for one was almost at $20,000, and in the eleven months since, its price has fallen by 70%. What’s also happened in tandem with that is a dramatic fall in trading volume. Countering that, the market has arguably been at its most stable over the past few months.
CZ conceded in his interview that “we only have one-tenth of the trading volume compared to what we had in January”.
Yet he – as many have done – put across the idea of looking at the much bigger picture. “Compared to like a year or two years ago, we’re still trading at huge volumes”, he pointed out. “Business is still okay, we are still profitable, and we are still a very healthy business”.
He stated his belief too that the over the counter market for cryptocurrency is busy, and that’s where the institutional investors are doing much of their business. The figure for OTC transactions isn’t recorded in quite the same way, and CZ said that “what I’ve heard is the OTC market is at least as large as the live recorded volumes”.
He added that “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 full interview with CZ can be found here.