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June 28, 2022, 4:35 p.m. EDT

Binance CEO says the worst of the crypto crash ‘is probably over’

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By Weston Blasi

That’s Changpeng Zhao, CEO and founder of crypto exchange Binance, discussing the recent skid in crypto prices, which some are labeling a full-scale crypto crash .

Zhao’s comments were documented by Coindesk cryptocurrency writer Sandali Handagama. The event did not release video of the panel speeches of the conference.

While speaking at the invite-only Point Zero Forum conference in Zurich, Switzerland on June 22, Zhao — a Chinese-Canadian executive commonly identified as “CZ” — said he doesn’t expect any more major price drops for crypto in the near future, according to a writer covering the event .

See also: California is sending ‘inflation relief’ checks up to $1,050 — here’s who qualifies

On the topic of crypto exchanges and crypto lenders, Zhao reportedly warned that only businesses that operate with sustainability in mind, and not short-term customer inducements, will stand the test of time.

“If you’re only getting users because you’re using incentives to attract users, that’s not a real business model. Eventually you’re gonna run out of money and you will crash,” said Zhao, as reported by Coindesk writer Handagama on Twitter /zigman2/quotes/203180645/composite TWTR +0.73% .

Zhao’s belief that the worst of crypto’s recent plunge is over would be a life raft for crypto bulls .

The day after his panel discussion, bitcoin was trading just above the $20,000 —prices for bitcoin and ethereum /zigman2/quotes/108573964/realtime ETHUSD +1.48% were both down over 50% from 2021 highs the day of Zhao’s comments.

See also: Crypto exchange CoinFlex says one of the most prominent names in the industry defaulted on $47 million USDC debt

In June, Binance halted withdrawals of bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.99% for several hours over what the company called a “ stuck transaction .”

Fellow crypto lending platform Celsius also paused withdrawals in June and transfers this month due to “extreme market conditions,” the company said.

Related: Why is crypto crashing? Mark Cuban says ‘crypto is going through the lull that the internet went through.’

Recent crypto market conditions have not only led to crypto prices being slashed, but also impending layoffs at crypto exchanges. Crypto exchange Coinbase /zigman2/quotes/225893452/composite COIN +7.73% laid off 18% of its employees, and BlockFi says it plans to lay off 20% of its employees and Gemini plans to lay off 10% of its employees .

/zigman2/quotes/203180645/composite
US : U.S.: NYSE
$ 44.26
+0.32 +0.73%
Volume: 7.86M
Aug. 12, 2022 4:04p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$33.87 billion
Rev. per Employee
$697,157
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/zigman2/quotes/108573964/realtime
US : Kraken
1,971.34
+28.77 +1.48%
Volume: 60.24M
Aug. 14, 2022 9:53p
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/zigman2/quotes/31322028/realtime
US : CoinDesk
24,566.83
+240.16 +0.99%
Volume: 0.00
Aug. 14, 2022 9:52p
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/zigman2/quotes/225893452/composite
US : U.S.: Nasdaq
$ 90.49
+6.49 +7.73%
Volume: 13.76M
Aug. 12, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$20.09 billion
Rev. per Employee
$1.55M
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