Crypto exchanges continue to be strong
In view of the corona crisis, Zhao notes that the year 2020 “has so far been difficult given the global situation”. However, the crypto exchanges would “actually be doing quite well,” he adds.”Although the bitcoin price has dropped, we are seeing a lot more trading activity,” explains the Binance managing director, emphasizing that the trading volume on the largest crypto exchanges is currently between three and five times as high as usual.
The downturn came as a surprise
However, Changpeng Zhao admits that, like the majority of crypto experts and investors, he had not expected that the crash of the global economic market would also affect the crypto markets so severely:
“Actually, we had all assumed that Bitcoin would climb up in an economic crisis. In fact, it happened that the global economic market fell by 5%, which simply wasted a lot of money. ”
In addition, many investors wanted to convert their crypto assets back into cash at the same time because of the crisis, which further fueled the crash of the crypto markets.