Binance CEO: ‘This too shall pass’ amid single largest crypto liquidation event
Richard Teng, CEO of Binance, said volatility would become less relevant as crypto markets mature and projects grow larger.
Teng, who succeeded Binance founder Changpeng Zhao as CEO, encouraged crypto users to weather oongoing volatility and focus on skill-building while markets slumped.
More than $2 billion in liquidations within 24 hours sent cryptocurrency prices plunging, while the total digital asset market cap dropped 6.5% to $3.3 trillion.
Bitcoin (BTC), Ethereum (ETH), and major altcoins like Ripple’s (XRP) lost as much as 4% – 15% amid the liquidation cascade. Tokens such as Solana (SOL), (BNB), Dogecoin (DOGE), and Cardano (ADA) also buckled under the sell pressure.
“This too shall pass. It’s helpful to realize that this downturn is temporary,” Teng wrote on his personal X page, addressing the general crypto community. He noted that digital asset investors have experienced multiple drawdowns in past market cycles.
Teng argued that markets would outgrow volatility and eventually show more steady upward trajectories in the future. The Binance CEO also advised users and traders to upskill during the market downtime, a move to “prepare for opportunities.”
As the crypto market matures, volatility will become less of a concern. Volatility is tied to market size—assets with smaller market caps are more volatile. As digital assets gain utility value, volatility will be less of a concern. That’s a cause for optimism!
Richard Teng, Binance CEO
On Feb. 3, the crypto market saw its largest single-day liquidation event since the 2020 COVID correction and the crash spurred by FTX’s fall. However, Bybit CEO Ben Zhou believes liquidations far exceeded the $2 billion mark.
