Binance CEO: ‘This too shall pass’ amid single largest crypto liquidation event

Binance CEO Richard Teng on Crypto Market Volatility

Binance CEO Richard Teng believes that market volatility will diminish as the crypto market matures and projects expand. Teng, who replaced Binance founder Changpeng Zhao as CEO, urges crypto users to remain resilient during periods of volatility and focus on developing skills.

Market Downturn and Liquidations

Recent market volatility and mass liquidations have caused a sharp decline in cryptocurrency prices, with the total digital asset market cap dropping by 6.5%. Major cryptocurrencies like Bitcoin, Ethereum, and Ripple's XRP have lost significant value.

Teng's Advice

Teng offers three pieces of advice:

1. Volatility is Temporary: Market downturns are not uncommon and will pass.
2. Upskill During Market Downtime: Use this period to enhance your knowledge and skills.
3. Prepare for Opportunities: Market volatility presents opportunities for those who are prepared.

Volatility and Market Maturity

Teng believes that market volatility is linked to asset size and value. As digital assets gain wider acceptance and utility, volatility is likely to decrease.

Largest Liquidation Event Since 2020

The market witnessed its largest single-day liquidation event since the 2020 COVID-19 correction and the FTX collapse on February 3. However, Bybit CEO Ben Zhou estimates that liquidations exceeded $8 billion, significantly higher than the reported $2 billion.