Cryptocurrencies of late have been dropping, and digital currencies are shaking. Bitcoin has dropped from a high of $47,000 to $29,000 within a month. The same trend has been seen on all the other currencies, except for stablecoins such as USDTs. There have been some consequences, and the big names in the cryptocurrency industry have something to say. Let us look at Changpeng Zhao of Binance, Brian Armstrong of Coin base, Sam Bankman Fried of FTX, and Jack Dorsey, Twitter co-founder and CEO of Block Inc.
Binance is celebrating its 5th birthday this coming June. The exchange platform is the biggest in the world, and they have one of the most vocal and interactive CEO in the industry, Mr CZ, as many know him by the initials of his full name. A while ago, Zhao stated that prices normally fluctuate at this level of crypto growth. He said, “Crypto is still in its growth stage. It is susceptible to higher levels of volatility. Any number you hear one day will differ from a number you hear the next day.”
The founder of Coin base had a whooping net worth of up to $13.7 billion by November 2021, which went down to $8 billion by March 2022. This results from the drastic fall in cryptocurrency values, with Bitcoin and Ethereum going down by 20%. Brian compares the growth curve of cryptocurrency to that of the internet sometime back in the 90s. The curve is shaky now, but the growth will be steady with time. He ascertains that cryptocurrencies are here to stay, and the prices now are not supposed to scare anyone. The trend can be traced to the last few years, and it’s a matter of time before the growth curve starts shooting again.
Sam Bankman Fried
The young billionaire is the founder of FTX crypto exchange firm and has a net worth of an excess of $20 billion. His net worth was reduced to $11.3 billion by April this year due to the current price fall. Against all this, the young billionaire gave a share of his mind on the price crisis in an email he sent to The Fortune.
“Crypto markets have stabilised, modulo whatever happens in traditional markets,” said Bankman-Fried. He was referring to modulo, a math operation, in saying that crypto markets will respond concerning traditional markets. “So if stocks recover, I would expect similar in crypto. If stocks keep crashing, so might BTC.” He added that the market cannot and will not crash to zero. The financial ecosystem of cryptocurrency is not at its best compared to a few months ago. This is, however, not a problem as the key heads in the technology ascertain that the prices are just being affected by the prevailing economic, social, and cultural factors and are behaving as the stock market does.
The war in Europe, the high levels of inflation experienced worldwide, and the increased food prices globally are some factors affecting crypto prices. It is just a matter of time before the prices shoot again, and analysts have predicted that cryptocurrencies will hit their highest values by this year’s august.