“‘I think the worst part is probably over. We’ve seen a pretty sharp drop.’”
That’s Changpeng Zhao, CEO of cryptocurrency exchange Binance, discussing the recent skid in crypto prices, which some are labeling a full-scale crash.
Zhao’s comments were documented by Coindesk crypto writer Sandali Handagama. The event had not released video of the panel speeches as of Thursday morning.
While speaking Wednesday at the invite-only Point Zero Forum conference in Zurich, Switzerland, Zhao — a Chinese-Canadian executive commonly identified as “CZ” — said he doesn’t expect any more major price drops for crypto in the near future, according to a writer covering the event.
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On the topic of crypto exchanges and crypto lenders, Zhao reportedly warned that only businesses that operate with sustainability in mind, and not short-term customer inducements, will stand the test of time.
“If you’re only getting users because you’re using incentives to attract users, that’s not a real business model. Eventually you’re gonna run out of money and you will crash,” said Zhao, as reported by Coindesk writer Handagama on Twitter.
Zhao’s belief that the worst of crypto’s recent plunge is over would be a life raft for crypto bulls. On Thursday, bitcoin was trading just above the $20,000, and is down 29.67% in the last month, and down 53.59% over the last three months. Also on Thursday, ether
was trading just above $1,000, and has seen a 43.84% decline in the last month, and a 64.40% decline over the last three months.
Read more: Bitcoin skids under $20,000 in Minsky Moment for crypto: ‘Psychologically for a lot of people, this is galling’
Last week, Binance halted withdrawals of bitcoin
for several hours over what the company called a “stuck transaction.”
Fellow crypto lending platform Celsius also paused withdrawals and transfers this month due to “extreme market conditions,” the company said.
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Recent crypto market conditions have not only led to crypto prices being slashed, but also impending layoffs at crypto exchanges. Crypto exchange Coinbase
laid off 18% of its employees, and BlockFi says it plans to lay off 20% of its employees and Gemini plans to lay off 10% of its employees.