It is not the first time that the head of the cryptocurrency exchange Binance has commented on the prospects of further developments in the coin market. In particular, at the end of September 2022, Changpen said that such a period is suitable for making important changes for the industry. In addition, Zhao has no doubt that the digital asset niche itself is very young, which means it has more than enough potential for further development – and even in spite of the current high-profile collapse.

Cryptocurrency market downturn

How long before the industry’s decline phase is over? According to Solana project co-founder Anatoly Yakovenko, the bearish trend can last up to 12-18 months, but the reason for such a prolonged period is the Fed’s policy. The Fed is now raising its key interest rate, which makes investors’ appetite for risky assets like crypto much less. Which essentially means that the onset of the bull run will depend on the authority’s representatives. Read more about the situation in a separate piece.

What’s happening to the cryptocurrency market

Zhao said in a recent interview with Bloomberg that the market downturn will not derail Binance’s strategy: the exchange plans to spend significant amounts on various deals in the next three months. Meanwhile, Binance has already invested in 67 projects, bringing its total investment to $325 million.

According to The Block’s sources, Zhao has no plans to invest in credit platforms. Here’s his line with which he commented on the plans.

Many of them just take the user’s money and give it to someone else. There isn’t much intrinsic value in them. In that case, what is there to purchase? We want to see real products that people use.

Binance chief executive Changpen Zhao

The head of Binance also expects further consolidation of the crypto market. He does not rule out more collapses, but stresses that this is “a time of opportunity”. It is worth mentioning that the BNB Chain blockchain was hacked this week by a hacker who managed to steal around BNB 2 million, although he never got the full amount in the end. Consequently, criminals are active even now that the coin industry is in a collapse phase.

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Binance is not the only cryptocurrency company that has been active in investing lately. Mining firm Iris Energy has also recently announced plans to merge and acquire other organisations. In addition, the firm’s management is considering “organic expansion”, that is, increasing the processing power of its mining equipment.

Last month, Iris Energy struck a deal with investment firm B. Riley for the right to sell up to $100 million worth of common stock, another capital-raising initiative. In all, Iris Energy increased its average operating hash rate by 24 per cent in September compared to August - it now reaches 2.72 exasheets per second.

Data on Iris Energy

As you can see, even despite the prolonged bearish trend, many crypto firms have enough capital to not only “keep themselves afloat” but also to expand. This is a good sign in the development of the crypto industry’s infrastructure, which gives an important boost for the next bull run.

Overall, it is clear that those giants that have the resources to keep up and expand are able to survive this period of decline. This includes cryptocurrency exchange FTX, which just announced the launch of its own bank card in partnership with Visa in at least 40 other countries. This means many more people will be able to use digital assets in their daily lives.

You can wait for the bullrun with our cryptochat subscribers. There we talk about other important topics related to the decentralisation industry.