Crypto Market Still in Good Condition Despite Bearish Situation, says Binance CEO

Nov 12, 2018 at 21:29

Binance chief executive officer Changpeng Zhao declared that the crypto market and his exchange is still in a good position even trading has turned sour this year.

In an interview with CNBC, he detailed that the market already lost more than 70 percent of its valuation while volume in Binance went down nearly 90 percent since January, which was partially caused by the high level of stability of Bitcoin in recent months.

“Compared to January (2018), we are probably down 90 percent so we only have one-tenth of the trading volume compared to what we had in January. Compared to like a year or two years ago, we’re still trading at huge volumes. Business is still okay, we are still profitable and we are still a very healthy business,” Zhao said.

He also expressed that Binance is still maintaining a healthy position due to steady increase in the number of active users and Bitcoin deposits in the exchange.

Apart from talking about the exchange’s situation, Zhao also claimed that the actual trading volume of the crypto market is easily twice the size of the current volume.

“What I’ve heard is the OTC (over-the-counter) market is at least as large as the live recorded volumes (on exchanges). So, that is at least 50 percent of volumes that is not being reported on CoinMarketCap but we’re not heading to that business, so we don’t know the real volumes,” he stated.

As of November, the daily trading volume of the crypto market is estimated to be around $11.7 billion but if Zhao’s claim is proven to be true, it means that the volume of the crypto market will be $23.4 billion together with the OTC market.

Notably, CoinMarketCap provides market data as it report the daily trading volume of major cryptocurrencies and the entire crypto market based on the volumes recorded by exchanges like Binance.

Earlier this month, Zhao’s company has reportedly signed up more than 40,000 users in Uganda during the first week of local operations.

Apart from the African nation, it can be recalled that Binance has also been active in setting up an office in South Korea to also corner the Asian market.