Binance CEO: Talent, not the market, is the limiting growth factor

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Changpeng Zhao, founder and CEO of Binance, makes a prediction about crypto amid a market in turmoil and regulation on the horizon in an interview with CNBC’s Squawk Box.

The future of stablecoins

When asked if he thought the future of algorithmic stablecoins was now dead, Changpeng Zhao said:

I don’t think so. Just because one project fails…when you use one asset as collateral for a different asset, there’s always the risk of that de-pegging.

He gave banks taking money away as an example. “There is always a risk”

Is there a problem with Bitcoin?

Prompted by the host to discuss Bitcoin (BTC/USD):

When the main crypto is down 70%, there’s an issue…is there a problem with Bitcoin?

He replied:

Is there a problem with stock markets? Netflix is also down 70%. In a market, you want volatility. If it’s just going to stay at one point, who’s going to invest?

He mentioned that cryptos peak in 4-year cycles, which he has always said, adding that today, Bitcoin is still higher than its 2017 ATH. At the time, it reached $19,345. While this is indeed lower than its current price, it was almost $69,000 in November 2021.

Is there hope for the flagship crypto?

Asked whether there was any hope Bitcoin would recover any of its losses in 2022, he replied:

It’s hard to say in 6 months…but in 20 years, the technology is going to evolve so much that everyone is going to be using crypto and blockchain technology in some fashion.

Looming regulation

Changpeng Zhao commented that the crypto sector was too new to say how regulated it would be within a specific time frame. He drew a comparison with new bank regulations 70 years after the fact and stated that regulators have only been looking at crypto since recently.

It will take many years, even after 2025…2030…there will still be new regulations to come out.

Binance is hiring 2,000 new employees

The host raised the issue of Binance’s decision to hire 2,000 staff while the rest of the industry was cutting back.

Is this just false bravado because we’ve got a market in turmoil?

He adamantly denied that, insisting Binance was “increasing the head count, by a couple of hundred every week.” He added:

Talent has always been the limiting growth factor, not the market. We have been frugal in other places. With many other companies laying off, talent is easier to hire.  

The post Binance CEO: Talent, not the market, is the limiting growth factor appeared first on Invezz.

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