CZ explains why it’s so important to be building during the bear market

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Dur­ing a live pan­el at the Web Sum­mit in Lis­bon, Chang­peng Zhao (col­lo­qui­al­ly styled as CZ), CEO of cryp­tocur­ren­cy exchange Binance, shared his view­point on why it’s so impor­tant for cryp­to projects to con­tin­ue their devel­op­ment in the bear mar­ket. As told by CZ:

“It’s eas­i­er to hire tal­ent in the bear mar­ket. A year ago, a col­lege grad­u­ate know­ing a lit­tle bit of Solid­i­ty pro­gram­ming cost a lot of mon­ey. The salaries just did­n’t make much sense to me, but now it’s come down to very rea­son­able levels.”

“Now it’s easy to hire peo­ple and grow,” he said, while also point­ing to the declines in project val­u­a­tions: “A year ago, every project with a test prod­uct or six-page whitepa­pers was worth $100 mil­lion. Cur­rent­ly, the val­u­a­tion is very reasonable.”

CZ explained that a com­bi­na­tion of low­er labor costs and less expen­sive projects has made it an ide­al envi­ron­ment for cor­po­rate acqui­si­tion and con­sol­i­da­tion. “For exam­ple, a year ago, every­body want­ed to sell a non­fun­gi­ble token, but now, only the strongest of projects are doing it, so the selec­tion is actu­al­ly much better.”

As for a pos­si­ble end to the bear mar­ket itself, CZ point­ed out that cryp­to mar­ket cycles typ­i­cal­ly last four years, with one year of falling prices, then two years of recov­ery, and a final year of ris­ing prices. The Binance exec­u­tive and blockchain per­son­al­i­ty also reit­er­at­ed that he believed in the long-term poten­tial of cryp­to: “We’re very long-term investors. So we antic­i­pate to be involved in the space for the next 10, 50, or 100 years.”

CZ also cit­ed emerg­ing signs of a mar­ket turn­around: “Right now, there are expo­nen­tial­ly more peo­ple now trust­ing cryp­to instead of not trust­ing them. In addi­tion, the indus­try has grown tremen­dous­ly over the last how­ev­er many years.” But he also cau­tioned against using his­tor­i­cal evi­dence to make for­ward judg­ments, say­ing: “So we are close to a year into this bear mar­ket, but I can­not pre­dict the future because, at the end of the day, his­to­ry does­n’t pre­dict the future.”



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