Cryptocurrency’s 2018 Timeline was a “Correction Year” According to Binance Exchange’s CEO
In a recent interview with Bloomberg, Binance chief, Changpeng Zhao called 2018 a “correction year” for cryptos.
The interview started with Zhao talking about the departure of Blythe Masters as the CEO of digital assets. He starts off by accepting that 2018 has been a tough year of cryptos. As many projects didn’t make it this year, the CEO deemed this year as “correction” year.
In traditional finance, correction is a reversal of at least 10 percent in the value of a stock, bond, commodity or index. The reversal’s direction is often negative, as a correction usually stops an overvalued item’s upward trend. A stock’s value can sometimes grow for no reason, and investors will buy it, hoping to profit as the trend continues.
Eventually, buying slows down and investors cash in their gains. If such stock were to fall 10 percent or more from its highest point once the sell-off begins, returning to a more realistic value, it has experienced a correction.
A correction can precede a recession or a bear market, though it will have a shorter duration than either. A correction may be deemed necessary to prevent a bubble from forming and later bursting.
He then plugged in his Blockchain Week Conference which is supposed to held in Singapore. He says since 2018 had been a bad year for cryptos, he wants to start 2019 with a bang. He says that people in the industry are very confident about the space and the development around it.
When asked about how much of an impact the price action is going to have on cryptos, Zhao stated:
“Price is very strong traction for a lot of speculators. However, the interest in cryptos is going to be driven up by the builders who will increase the adoption of cryptocurrencies. There will always be speculations, either upwards or downwards. Last year fluctuated upwards too much and now we are in the middle of the correction phase. The long-term industry is only sustained by real use cases.”
When asked about the increased regulation around the crypto space, he replied that he “wants clarity, there is still too much uncertainty in many countries in the world.”
He is hopeful for regulations that breed innovation not smother it.