The CEO of the world’s largest cryptocurrency exchange by means of traded volume – Binance, holds that the current state of the market is undervalued.
Cryptocurrency Bear Market a Stretch
Speaking at the Binance Blockchain Week in Singapore, the CEO of Binance, Changpeng Zhao, shared his thoughts on the current state of the industry.
According to him, the market is currently undervalued because its pricing doesn’t seem to factor in the ongoing development and interest attested to it.
There are more people in the industry, there are more people working in the industry, there are more people attending conferences, there are more conferences going on. The builders are building, we are seeing a lot more development in the space, so I actually think that we’re probably overshooting on the lower side, but again I could be wrong, this is mass technology. – He said.
It’s worth noting that a recent Diar report revealed that cryptocurrency exchanges marked a record year in 2018, despite the plunging prices.
2017’s Bull Run Also Overshot
It’s worth noting, however, that Zhao also seems to believe that 2017’s unprecedented bull run was also a bit of a stretch.
I believe… at the end of 2017, there was definitely an overshoot on the price side… There was a lot of guys rushing in, very simple projects with very simple whitepapers. […] Then of course as everybody rushed in…once that massive rush-in finishes the price declines. – Zhao noted.
2017 saw most of the cryptocurrency skyrocket, as the entire market reached a capitalization upwards of $800 billion. Bitcoin (BTC) was trading upwards of $20,000.
2018, however, hasn’t been so favorable. The market lost almost $700 billion of its capitalization while its forerunner is currently trading at around $3,500.
What do you think about Zhao’s position on the current state of the market? Do you think it will pick up in 2019 or will we fall even further? Don’t hesitate to let us know in the comments below!
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