Countries around the world are in lockdown to stop COVID-19 from spreading further. This lockdown that has been going on for weeks has brought the world economy at a standstill with no production or consumption going on.
But even during this time, some businesses like crypto and video communication software such as Zoom and Skype are flourishing.
As we reported, the crypto market has been recording a significant increase in trading volume and new sign-ups.
In an interview with Anthony Pompliano on his podcast, Binance CEO Changpeng Zhao revealed, “The numbers we’re seeing are just phenomenal. So, in general roughly about 5x more volume than before. Since coronavirus took over, business-wise the platform is doing really well.”
He further shared that despite the novel coronavirus rampaging economy, they are having a good time with the futures market clearly being the number one feature.
Currently, bitcoin is trading around $7,150, up over 80% from the low of $3,850 in mid-March, which was a decline of more than 60% from February high of $10,500.
But this volatility is good for crypto businesses, said CZ as he explained that, “for exchanges the worst is when the market is flat. When there’s volatility there’s always high volumes.”
Not just Binance but other exchanges also recorded a huge increase in activity on their platforms. While Coinbase saw a 2x increase in new user sign-ups, Kraken reported an 83% increase and Paxful saw double the sign-ups. MEW (MyEtherWallet) also had its “buy” orders doubling and the amount of ETH purchased spiking 9 times over the weekly average.
Binance is also seeing business demand on its platform “growing” which the CEO said is also because they have a strong balance sheet supporting the business.
This has been because “people are bored at home with nothing to do” but more importantly “the macroeconomic issues with quantitative easing people moving slowly back into crypto,” said CZ.
While the world is seeing unprecedented global layoffs, CZ said, in the current turbulent times there are a “lot more opportunities.” And in these times, cryptos will “see a fairly strong boost combined with quantitative easing, depression, and countries having no other option but to print a lot of money.”
But this money hasn’t made its way into the market yet and when it starts following, “most prices are gonna go up very dramatically and I think cryptocurrency will go up much more proportionally higher.”
During his interview, Zhao also shed light on the recent acquisition of the crypto data tracking site CoinMarketCap for $400 million. A long-term vision, CZ maintained that CMC will continue to work independently and be the “landing page of crypto.”
He further shared that because of their small team, CMC hasn’t been expanding super aggressively but growing organically. But he believes “it is one of the most valuable platforms in the industry and I think we’ll grow another 10x, 100x.”
He also commented on not wanting to be the first from crypto to have an IPO because of a lack of regulatory clarity and because it won’t offer them as much flexibility as they have now.
Pomp ended his interview by asking CZ about the biggest misconception about him to which he said that people think he controls the crypto prices. Binance founder said, if he did “Bitcoin would be going straight up.”
“I’m always bullish. I always think the price is too low and for our business, it’s much better for the price to be higher,” CZ said.