Changpeng Zhao (Binance CEO) believes that a proactive decrease in cryptocurrency exposure by traditional institutions in response to ecosystem collapses 2022 could potentially have negative consequences for traditional financial players. “CZ Zhao” believes that ecosystem collapses are likely to occur in 2022. Zhao believed that such a fall could have a damaging effect on the traditional participants in the financial industry. Zhao was convinced that such a decline could have an adverse affect on traditional players in the financial industry. He therefore suggested that a reduction of this magnitude be considered. Zhao was able to see that a fall of this magnitude could have a negative effect on the traditional financial players. Zhao thinks that this decrease could have a negative effect on traditional players. This happens at a moment when many well-established institutions are responding to the action by decreasing their exposure cryptocurrency markets.
As a result of the collapse of key cryptocurrency businesses like FTX or Terraform Labs, investor confidence in the entire cryptocurrency industry has dropped dramatically. This failure has forced traditional markets to reconsider the methods they intended to use in order to enter the ecosystem of bitcoin. These traditional markets had intended to use these techniques to access the bitcoin ecosystem. CZ thinks that this option may not be effective in the twenty-years to come. However, the reluctance to use cryptocurrencies by traditional markets creates a barrier. CZ believes that this decision may not be effective in the next twenty years. CZ thinks that if you wait for twenty years, and then make the decision to take this action, it might prove counterproductive.
