In the last four days, the world of cryptocurrencies has suffered one of its falls in recent years, to such an extent that the founder of Binance, Changpeng Zhao, has reminded his followers that above “fashions”, in the world crypto you have to bet on “real products” with an “intrinsic value”.
“At the end of the day, we have to go back to basics. Build real products, that do not depend on short-term incentives or promotions, but have intrinsic value that people use,” he wrote this morning.
The businessman has thus referred to the crisis of the TerraUSD currency, a stablecoin that has gone from being worth more than 100 dollars to a meager 30 cents in a matter of days. The TerraUSD crisis has escalated rapidly and has been transferred to the rest of the values, to the point that in less than 24 hours investors have taken more than dollars out of the cryptocurrency market, leaving thousands of enthusiasts bankrupt and sinking the value of the main electronic currencies, such as Bitcoin and Ethereum.
He, one of the most important cryptocurrency trading companies, has argued before his audience of almost 6 million followers that these fluctuations are part of the world of investment and that sometimes they occur for no apparent reason.
“Many have asked me today about the markets. We have to respect the market, with some caution too. It goes up and down in cycles. And above all, it doesn’t always make sense,” he wrote on the social network.
However, at the same time, he has implied that in his opinion there are products in the cryptocurrency market that do not provide real value to consumers, and that part of the investors work on the basis of “fads”, so when a coin starts to fall, a “vicious circle” can quickly set in, causing its value to plummet, as has happened with TerraUSD.
“We are in a new market, with many innovations. Stablecoins are one of them. When they are in style, they are in style. When they fall, it can be a vicious circle. Some innovations will succeed, many will not,” you can read in your profile.
Finally, Zhao has called for calm so that his followers (and customers) do not stampede out of the market: “We have to humbly respect the market, and not be arrogant. Build step by step, day by day. And let the rest to the market and to time”.
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