Binance CEO Believes Market Is Still In Good Position
In a recent interview on CNBC Crypto Trader segment hosted by Ran Neuner, the CEO of Binance Changpeng Zhao (CZ) said that the crypto market and Binance are still in a good position even after almost a 12 months of a downward price movement.
Over the past year, the cryptocurrency has lost more than 70 percent of its valuation between the fourth largest correction in its ten year history.
In the interview, the CZ stated that the number of Binance is down by nearly 90 percent since January because of the correction and partly due to the high level of stability Bitcoin has shown us over the past three months.
CZ said that:
âCompared 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, weâre still trading at huge volumes. Business is still okay, we are still profitable, and we are still a very healthy business.â
However, with the steady increase in the volume of active users and Bitcoin deposits, Binance is still seeing some good volume and maintaining a strong business.
âRight now we are still signing up a steady amount of new users every day so from what we are seeing, itâs 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.â
As mentioned by CCN, digital currency market data providers such as CryptoCompare, CoinMarketCap and CoinCap report the trading volume of some of the biggest cryptocurrencies based on the volumes recorded by exchanges like Binance on a daily basis.
Earlier this year, several research companies including TABB Group, an international research company, reported that the over-the-counter (OTC) market, where big institutional traders tend to trade, is at least twice as big than the crypto exchange market.
A digital currency researcher, Eric Wall stated:
âJust read an estimate from the TABB Group (in a $5,000 report) that OTC crypto markets exceed exchange volumes by 2-3x. That would mean 1 to 1.5 million BTC is traded OTC daily. Strange itâs not visible on the blockchain, which shows a meagre 100,000 a day.â
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