Binance is making significant strides in its goal to be the go-to Blockchain services provider. The company’s CEO, Changpeng Zhao, was recently featured in an interview with The Street, a financial news publication site.
He had a lot to say about his company’s ambitions and quite interesting insights about the future of the cryptocurrency industry.
Institutionalization Is A Good Thing
The cryptocurrency industry has seen an influx in the number of institutions showing interest. In fact, some countries such as Singapore and Switzerland have been making policies designed to make the cryptocurrency market friendlier for investors.
Many major corporations are also expressing interests in the market, and all of this is apparently good according to Mr. Zhao.
“The increase in institutions’ participation in the market is a good thing,” said Mr. Zhao.
“It is a sign that the cryptocurrency market cap will grow a lot more,” he added.
Mr. Zhao likened the growth of the cryptocurrency market to a snowball rolling down a snowy slope. He essentially implied that the increased participation of institutions would give more investors the confidence boost they need to venture into the market.
He was particularly keen to explain that a decline in stability and improvement in volatility levels would be key to luring the investors.
“The ongoing decline in stability will create a good environment for more adoption by both merchants and investors – it is just a matter of time.”
Fidelity Investments A Good Example
Numerous institutions have already ventured into the cryptocurrency market. However, Mr. Zhao settled on Fidelity Investments to prove his sentiments about the market’s future.
Fidelity Investments is an investment management giant that manages assets worth over $2 trillion – this is more than 10 times what the entire cryptocurrency market is currently worth. Its decision to launch a portal where clients can trade digital assets last month came as big news and is expected to have positive long-term implications for the entire industry.
More Positive Insights
Interestingly, Mr. Zhao’s recent interview with The Street came just weeks after another interview with CNBC Africa where he expressed optimism that the cryptocurrency market may be in for a bull run soon.
However, Mr. Zhao was also keen to emphasize that American investors lead the race when it comes to advances in the crypto markets. As he explained, American investors have the most leverage in spite of having to grapple with strict regulations compared to other countries in Europe and Asia.
However, he was also optimistic that things would look up for the American market as well and that expansion on a global basis would even the playing field.
Mr. Zhao is the CEO of Binance and a former employee at Bloomberg. To this end, his insights are credible and trustworthy considering that his explanation and specific examples work out. As such, crypto investors may be looking forward to a brighter future and greater investment opportunities as institutions make inroads into the industry.
As Mr. Zhao explained, it is only a matter of time before this happens on a global scale.