Binance US CEO Brian Shroder says more crypto companies will be liquidated in the coming months after Terra’s collapse. He also explains two altcoin projects he trusts.
Binance US CEO: Not everyone will survive in the market
Brian Shroder shared his views on the market in a recent interview. Shroder says he is not surprised by the numerous unfortunate events that have occurred in the cryptocurrency space over the past few weeks.
Shroder compares recent events in the cryptocurrency space to the dot-com boom. He adds that increased adoption in the emerging asset class is often accompanied by hiccups. In this context, Shroder makes the following statement:
There are always hiccups. Because that’s exactly how adoption curves work. When new technology emerges and investors flock to it. A lot of bets are being made and not everyone will survive.
The state of the cryptocurrency market after the UST collapse
The value of the cryptocurrency market has plummeted following the collapse of Terra ecosystem tokens LUNA and TerraUSD (UST). The trouble started after Terra’s algorithmic stablecoin, UST, lost its peg against the dollar. This has affected not only its sister token, LUNA, but all cryptocurrencies in existence.
The unfortunate development also affected the popular cryptocurrency project Three Arrow Capital (3AC). Because, as you can follow from Kriptokoin.com, 3AC invested heavily in Terra. The company has now filed for liquidation. Similarly, Celsius Network was affected by adverse market conditions, which were also linked to the company’s Terra issue. Therefore, it had to suspend users’ token withdrawals, transfers and exchanges on its platform.
Also, many cryptocurrency companies have laid off huge staff to deal with the drop in cryptocurrency prices. In this way, they hoped that things would seriously settle down.
Shroder: More altcoins to liquidate
Crypto-related companies are trying to cope with the negative impact of the Terra incident. Meanwhile, US financial authorities implemented tight monetary policies to curb rising inflation. “Things have gradually become survival of the fittest,” says Shroder after recent developments. This is why he predicts more crypto companies will go bankrupt.
Binance US supports clearer crypto regulations
Above all, Shroder says Binance US supports having clearer regulations for the emerging industry. Because he believes it will go a long way in protecting investors, thereby increasing confidence. Shroder explains:
We support gathering these behind an official definition. So it’s possible for you to go out and claim it’s a stablecoin approved by the US Congress.
Shroder’s favorite altcoin projects
With the collapse of Terra’s algorithmic stablecoin, Shroder chose two stablecoins he believes in. Many expect the Binance.US CEO to choose Binance USD (BUSD). However, Shroder says it has more confidence in USD Coin (USDC) and Paxos (USDP).
“But for Circle and Paxos, these are more in line with what Congress would define as a stablecoin,” Shroder says. He also expresses his confidence in USDC and PAX. Because both stablecoins are denominated in dollars and backed by a 1:1 fiat currency.
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