Crypto crash is similar to 2000’s dotcom bubble, Binance chief says – The National

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UAE
  • Date: 28-Jun-2022
  • Source: The National
  • Sector: Technology
  • Country: UAE
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Crypto crash is similar to 2000’s dotcom bubble, Binance chief says – The National

Today’s cryptocurrency market meltdown is similar to when the dotcom bubble burst in 2000, according to Changpeng Zhao, chief executive of Binance, the world’s largest cryptocurrency exchange.

While some companies won’t survive the current “crypto winter", the underlying blockchain technology will endure, the cryptocurrency billionaire said during a pre-recorded video at DIFC FinTech Week, a two-day event for key FinTech players to discuss the future drivers of growth in financial services.

“Blockchain is a proven technology. Some cryptos may drop in price, some projects may fail but the technology will stay,” Mr Zhao said on Tuesday.

“This is similar to the dotcom bubble. Many companies failed but the technology stayed.”

Mr Zhao made his debut on the Bloomberg Billionaires Index in January with a net worth of $96 billion. However, his fortune has plummeted to $20bn after a massive sell-off in digital currencies across the board — from Bitcoin to Ether to Solana, Cardano and Shiba Inu, among others — and causing the sector’s total market capitalisation to fall below $1 trillion.



Bitcoin, the world's first and largest cryptocurrency, crashed below the key $20,000 psychological level last week as investors continued to steer clear of riskier assets amid concerns of rising interest rates as