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


I think the worst is over. We’ve seen a pretty steep drop.

That is Changpeng Zhao, CEO of cryptocurrency exchange Binance, discussing the recent drop in cryptocurrency prices, which some are labeling as a large-scale accident.

Zhao’s comments were documented by Coindesk crypto writer Sandali Handagama. The event had not released videos of the panel’s speeches as of Thursday morning.

While speaking Wednesday at the invite-only event Zero Point Forum conference in Zurich, Switzerland, Zhao, a Chinese-Canadian executive commonly identified as “CZ,” said he does not expect any more major cryptocurrency price declines in the near future, according to a writer covering the event.

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On the subject of cryptocurrency exchanges and cryptocurrency lenders, Zhao warned that only companies that operate with sustainability in mind, and not short-term incentives for customers, will stand the test of time.

“If you’re just getting users because you’re using incentives to attract users, that’s not a real business model. You will eventually run out of money and collapse,” Zhao said, as reported by coindesk Handagama writer on Twitter.

Zhao’s belief that the worst of the recent crypto slump is over would be a lifeline for crypto bulls. On Thursday, bitcoin was trading just above $20,000 and down 29.67% in the past month and 53.59% in the past three months. Also Thursday, ether

it was trading just above $1,000 and has seen a 43.84% decline in the past month and a 64.40% decline in the past three months.

Read more: Bitcoin falls below $20,000 at Minsky Moment for crypto: “Psychologically for a lot of people, this is irritating”

Last week, Binance stopped bitcoin withdrawals

for several hours over what the company called a “transaction stuck.”

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

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Recent crypto market conditions have not only led to cryptocurrency prices being slashed, but also imminent layoffs at cryptocurrency exchanges. Coinbase cryptocurrency exchange

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.