Venture capital firms are fleeing from markets yet Binance continues to expand?
“While many VCs have ‘paused’, we are actually more comfortable investing now.”
So what is Zhao’s secret? According to him, the market’s decline weeded out the weak leaving only the strong behind. 2017’s bull market raised assets across the board, including those lacking proper user bases and companies promoting flawed products. So as the market began to decline, so did the valuation of assets that rose with it in 2017.
Cryptocurrencies’ plunge into the bear market provided a more transparent value of assets. According to an article released by CCN, the previous market crashes resulted in a self-correction of markets, which appears to be happening now. As more assets depart, others are strengthened.
While other VCs are holding out, Binance along with other firms and companies, such as Fidelity and Nasdaq, continue to invest. Although some assets, such as bitcoin, might drop even further, Binance’s continuing interest shows that the path to recovery is around the corner.