Binance CEO Expects The Crypto Market To See A Huge Jump In Institutional Investment
The CEO of Binance, ChangPeng Zhao, has recently announced that a huge wave of institutional investments is about to enter the crypto market and that ICO investment will be on the rise once again. He also used the opportunity to share with the media the announcement that 2.5 million BNB tokens will be burned at this quarter.
The Institutional Investment IS Coming
Talking about the Quarter 4 of Binance on a LinkedIn post, Zhao stated that the overall market for BTC has been quite flat recently and that there has been a slight drop in the earnings of the 4th quarter when compared to the last one but that Binance was still able to pull “decent earnings” anyway.
One thing that does not make sense to Zhao is how the overall market dropped at the same time that the institutional investors are starting to come to the market. According to him, there is a general interest in ICOs and favorable regulation for cryptos around the world.
Zhao believes that the markets “always overreact, both on the high and the low side” and that is why the price of Bitcoin is low despite the ICO market being four times bigger than last year and the institutional investments starting to finally flow into the market. He believes that there is potential for this to change in the near future, as the institutional investors start to enter in greater numbers.
Burning BNB Tokens
Another point that was referenced in the LinkedIn post was the burning of 2,528,767 BNB tokens, about $34.5 million USD, on this quarter. This will be the biggest burning ever in Binance. According to Zhao, burning has the same financial effect as paying dividends but it is actually better because it does not have any of the downsides of dividend distribution at all.
Other topics included calling 100% dividend distribution, zero fee posting and 100% refund on trading fees “scams” and not real innovation, as he does not see them as sustainable and true. He also spoke about listing fees and said that he is not personally involved (probably because of Buterin’s recent “burn in hell” comments about centralized exchanges and high listing fees).