Recently, Chinese-Canadian business magnate and CEO of Binance, CZ, quieted speculation that Bitcoin is dead. CZ said that the current cryptocurrency winter has not reduced the active participation of members of the Bitcoin community. Conversely, CZ reiterated that the leading digital asset remains active and alive.
He added that it will remain so for the foreseeable future, regardless of detractors and macroeconomic market conditions. CZ tweeted on Sunday: “Bitcoin is not dead, we are still here”. His tweet is a reference to the current decline in the cryptocurrency market, which has had a negative impact on digital asset prices.
Furthermore, his tweet was aimed at calming the fud (fear, uncertainty and doubt) surrounding the cryptocurrency market after the recent FTX stock crash.
Most of those who responded to the tweet shared similar sentiments as CZ. One of the respondents was Michael Saylor (a well-known cryptocurrency advocate and co-founder of crypto asset management firm MicroStrategy). Saylor tweeted that Bitcoin will play a vital role in making the world better. According to him, Bitcoin is indestructible and immortal.
The FTX implosion is the latest to cause cryptocurrency investors to lose billions of dollars. It mirrors the collapse of the Terra Network, which led to many cryptocurrency companies filing for bankruptcy. Notable names include Voyager, 3AC and Celsius. After the FTX crash, some investors are starting to question whether it is wise to invest in crypto.
Rebuilding the cryptocurrency industry
However, many industry influencers, especially CZ, are trying to reduce the effects of the contagion. CZ's tweet on Sunday was similar to remarks made during Binance's sector recovery fund presentation last Monday. In announcing the launch of the recovery fund, CZ also called on wealthy cryptocurrency VCs to support the initiative.
The Binance Recovery Fund is an initiative by CZ to help the strongest cryptocurrency companies survive an unexpected cash crunch. The new owner of the Huobi exchange, Justin Sun, and the CEO of BankToTheFuture, Simon Dixon, are two prominent names who have publicly welcomed CZ's appeal.
Previously, CZ said that increased regulatory clarity is one of the effective ways to prevent an FTX-like implosion from occurring. On Wednesday, Ripple CEO Brad Garlinghouse appeared on CNBC's squawk box and noted that the cryptocurrency sector has survived many challenges in the past.
Therefore, he is convinced that he will survive the current crisis. However, he noted that it is common for any financial sector to experience downturns, as nothing is all sunshine and rainbows. The panic created by the implosion of FTX caused a sharp drop in the prices of cryptocurrencies, including BTC.
According to our data, BTC is trading at a quotation of $16.092 and was down 2,60% in the past 24 hours. The current price represents the low for two years now. It was last traded at that price in November 2020.
