Following the failure of Terra, Binance US CEO Brian Schröder predicted that other cryptocurrency companies would be liquidated in the coming months. However, he also describes two cryptocurrency initiatives he believes in.
Binance US CEO: Not everyone will thrive in business
In a recent interview, Brian Schroder discussed his opinion on the market. According to Schröder, the many tragic events that have happened in the crypto space over the past few weeks do not come as a surprise to him.
Schröder draws a parallel between current bitcoin events and the dot-com boom. He continues by saying that with increasing acceptance of new asset classes comes difficulties. In this context Schröder emphasizes the following:
There are constant hiccups because adoption curves work exactly the same way. When a new technology is developed, and money starts pouring in, there are many bets being placed, and not everyone may or may not win.
The state of the crypto space after the Terra collapse
Two tokens from the Terra ecosystem, LUNA and TerraUSD (UST), have collapsed, causing the crypto market to fall in value. This problem arose when UST, Terra’s algorithmic stablecoin, lost its peg against the dollar, affecting all cryptocurrencies in use.
Sadly, Three Arrows Capital, a well-known cryptocurrency project, was also affected (3AC). Since 3AC made a significant investment in Terra, as evidenced by Cryptocoin.com, the corporation has now submitted paperwork for liquidation.
Celsius Network was also hurt by the Terra problem being experienced by the company. As a result, token withdrawals, transfers and exchanges between users on its platform had to be halted.
In addition, many bitcoin businesses have undergone significant personnel cuts in response to declining cryptocurrency values. He believed that by doing so, things would start to calm down.
Schröder: More firms to be liquidated
The Terra incident has significantly impacted the cryptocurrency industry, which is being managed by related businesses. Meanwhile, harsh monetary policies were implemented by the US financial authorities to fight inflation.
Schröder commented on recent events by saying that “things have gradually become survival of the fittest.” Therefore, he predicts that more cryptocurrency businesses will fail.
Binance US Backs More Clear Altcoin Rules
Most importantly, according to Schröder, Binance supports more open regulations for developing markets in the US.
In his opinion, this will give a great boost to confidence while protecting the investors. Schroeder explains:
“We are in favor of integrating these under a recognized definition. So you can claim that it is a stablecoin that has been approved by the US Congress.”