The founder of Binance, the largest cryptocurrency exchange platform, Changpeng Zhao, has warned cryptocurrency traders of the danger of the digital assets, as the market slumps.
Ripples Nigeria gathered that the value of the cryptocurrency market depreciated by -49.6%, resulting to a loss of $1.11 trillion in the bitcoin between January to August 8, on ethereum and other cryptoasset investments held by investors.
Analysis showed that the volatility of the cryptocurrency market was driven by its most adopted cryptoasset, Bitcoin, which has dipped -47.9% year-to-date, with its market price losing $22,206.78 in eight months, to sell at $24,104.96 as at August 8, 2022.
With the cryptocurrency market capitalisation dwindling to $1.13 trillion from $2.24 trillion in eight months, Binance founder said that the digital currency market is highly risky. This could increase skepticism that prevents mass adoption.
In a tweet on Sunday, Zhao wrote that the cryptocurrency market is also volatile, “Crypto is high risk, high volatility”, he told his 6.7 million followers on Twitter.
Last month, Zhao had stated that the bear market currently being experienced, isn’t new to longterm cryptocurrency investors,, “In crypto, most OGs had to go through one bear cycle where people laughed at them. Those who bought/held in the bear market in 2018/2019 ($3,000) or 2014/2015 ($200) are fine today. And @nayibbukele and @saylor will be fine.”
Although, he had stated in July, that there’s still skepticism in the market, and this will affect cryptocurrency projects, even though there’s room for more adoption, “For crypto now, early adoption phase, still a lot of skepticism from mass consumers, what’s bad for one project is usually bad for other projects too. Also, market is nowhere near saturated. It’s a growing together phase”, his tweet read.
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