The leading cryptocurrency exchange Binance recently acquired the crypto data site CoinMarketCap for $400 million which according to Binance CEO, Changpeng Zhao, is based on a long-term vision.
CZ has maintained that the site will continue to work independently and provide access to crypto data and be the “landing page of crypto.”
CMC hasn’t been expanding super aggressively because of their small team and growing organically, he believes,
“it is one of the most valuable platforms in the industry and I think we'll grow another 10x, 100x.”
CZ also announced the launch of a mining pool and shared that the goal is to build both POW for Bitcoin and POS for most other coins.
Volatility brings “phenomenal” numbers to exchange
In his interview with Anthony Pompliano on his podcast, CZ shared light on the finances and how despite the coronavirus induced fear triggering the market sell-off, they are having a good time, especially recently.
“The numbers we're seeing are just phenomenal. So, in general roughly about 5x more volume than before. Since coronavirus took over, business-wise the platform is doing really well.”
The Futures market on Binance is clearly the number one feature, as per CZ.
Not just Binance, as we reported, other platforms like Coinbase and Kraken also recorded huge volume and onboarded new customers as the Bitcoin price went from $10,500 in mid-February to $3,850 in mid-March to now trading above $7,100.
This “Volatility is generally good for the business, for exchanges the worst is when the market is flat. When there's volatility there's always high volumes,” explained CZ.
COVID-19 and QE to work in favor of crypto
While countries are in lockdown to curb the spread of COVID-19, it has brought the world economy at a stop as businesses remain closed. But at the same time, some businesses are flourishing like that of crypto and video communication software such as Skype and Zoom. The reasons for the same according to CZ are,
“people are bored at home with nothing to do” and “the macroeconomic issues with quantitative easing people moving slowly back into crypto.”
In the current turbulent times, he said there are a “lot more opportunities” and he is expecting cryptocurrencies to “see a fairly strong boost combined with quantitative easing, depression, and countries having no other option but to print a lot of money.”
However, this money hasn't entered the market yet and once it starts following, “most prices are gonna go up very dramatically and I think cryptocurrency will go up much more proportionally higher.”
Also, he sees more banks and financial institutions to take a look at cryptos and be more willing to work with crypto exchanges and payment services.
As specifically for Binance, CZ said,
“We're seeing business demand on the platform growing and so we'll so I think we're kind of unique in that way where there's a strong balance sheet supporting the business and that's why we are very aggressive.”
During his interview, Zhao shed light on not wanting to be the first from crypto to have an IPO as it won’t offer them as much flexibility as they have now.
And the biggest misconception about him is that he controls the crypto prices because if he did, CZ said, “Bitcoin would be going straight up.” He shared that they don’t trade and,
“I'm always bullish. I always think the price is too low and for our business it's much better for the price to be higher.”