Recently, Chinese-Canadian business tycoon and Binance CEO Changpeng Zhao quelled speculation that Bitcoin is dead. CZ said that the current crypto winter had not reduced the active participation of members of the Bitcoin community. Instead, CZ reiterated that the leading digital asset remains active and alive.
He added that it would stay that way for the foreseeable future, regardless of detractors and macroeconomic market conditions. On Sunday, CZ tweeted: “Bitcoin is not dead; We are still here.” His tweet is a reference to the current downturn in the crypto space, which has negatively impacted the prices of digital assets.
Furthermore, his tweet was to calm the fud (fear, uncertainty, and doubt) surrounding the cryptocurrency market following the recent crash of the FTX cryptocurrency exchange.
Most of those who responded to the tweet shared similar sentiments with CZ. One of those who responded was Michael Saylor (a prominent Bitcoin advocate and co-founder of crypto asset management company MicroStrategy). Saylor tweeted that Bitcoin will play an important role in improving the world. According to him, Bitcoin is indestructible and immortal.
The FTX implosion is the latest that has resulted in multi-billion dollar losses for crypto investors. It reflects the collapse of the Terra network, which led to many crypto companies filing for bankruptcy. Notable mentions include Voyager, 3AC, and Celsius. Following the collapse of FTX, some investors are beginning to doubt whether it is wise to invest in cryptocurrencies.
Rebuilding the cryptocurrency industry
However, many industry influencers, particularly CZ, are trying to lessen the effects of the contagion. CZ’s tweet on Sunday was similar to comments he made when introducing the Binance Industry Recovery Fund last Monday. While announcing the launch of the recovery fund, CZ also called on rich crypto VCs to support the initiative.
The Binance Recovery Fund is a CZ initiative to help strong crypto businesses survive an unexpected liquidity crisis. New Huobi exchange owner Justin Sun and BankToTheFuture CEO Simon Dixon are two notable names who have publicly responded to CZ’s call.
Earlier, CZ said that greater regulatory clarity is one of the effective ways to prevent an FTX-like implosion from happening. Last Wednesday, Ripple CEO Brad Garlinghouse appeared on CNBC’s squawk box and commented that the cryptocurrency industry has survived many challenges in the past.
Hence, he believes that he would survive this current crisis. However, he pointed out that it is normal for recessions to occur in any financial industry since nothing is all “sunshine and rainbows”. The panic created by the FTX implosion has caused a sharp drop in the prices of cryptocurrencies, including BTC.
According to data from CoinGecko, BTC is trading at $15,811 and is down 2.80% in the last 24 hours. Its current price represents its 2-year low. It was last traded at that price in November 2020.
