Amid the overall cryptocurrency downturn and LUNA crash, Binance CEO Changpeng Zhao is quite optimistic about the future of cryptocurrency.
Changpeng Zhao took to Twitter yesterday and stated that UST was over-leveraged and crypto would stay.
This week started with negative trends in crypto prices, but Terra (LUNA) plunged more than 99% midway through. On Wednesday, its value fell 99% from $6.78 to over $1.00. Then it continued to decline today and is currently valued at $0.018.
Also, its market cap has fallen from $40 billion to just over $60 million, and many tokens are currently losing a quarter of their value in the last 24 hours, with investors moving towards less risky investments.
But crypto is here to stay as this is not the first time cryptocurrencies have experienced such severe volatility, and some investors are already eyeing opportunities for cheap entry.
The most famous cryptocurrency, Bitcoin, value kept changing around $40,000 last week. Six months ago, it hit an all-time high of over 68,000. This week it is currently trading at 28,000 after previously falling below $26,000 and slowly recovering.
But it is pretty certain that Bitcoin and other cryptocurrencies will survive this trend. Martha Reyes, head of Asset Broker and Exchange Bequant, noted that Bitcoin had weathered a correction of up to 80%. She also saw the negative trends as an opportunity for institutions to build positions at better levels. According to her as quoted by Barron’s,
“While we can’t call the bottom and correlations among asset classes remain elevated, Bitcoin has survived corrections of 70-80% in the past,” and “This may be an opportunity for institutions to build positions at better levels.”
Additionally, speaking on the same occasion today, Binance CEO urged the crypto community to go back to building real products that people use as this would make cryptocurrencies more likely to survive, and also stressed the need to respect the market and not be cocky.