The CEO of the world’s largest crypto exchange revealed that he “doesn’t get” the popular meme-based cryptocurrency Dogecoin (CRYPTO: DOGE).
What Happened: In an interview with The Associated Press, Binance CEO Changpeng Zhao said: “To be honest, I don’t get Dogecoin. But this shows the power of decentralization.
“What I think may or may not matter. If a large enough number of people in the community values it because it’s cute because they like the meme, then it has value,” he added.
Zhao also noted that despite being brought to the crypto market as a joke, Dogecoin has managed to garner a significant amount of liquidity over the years.
“For something to have liquidity, you need a large number of people to want to buy it or sell it. Once you have liquidity, a thing has value, according to the neutral market. So it’s not up to me to judge it,” he said.
The Binance CEO also believes that there is “no clear definition” of what a market bubble is. He drew reference to Amazon.com Inc’s (NASDAQ:AMZN) near 90% drop between 2000 and 2001 and its rise to become one of the most valuable companies in the world today.
“Did it go through a bubble? According to most laymen’s definition, it probably did. For Jeff Bezos, he would probably disagree,” he said.
The only crypto assets Zhao said he holds are some Bitcoin (CRYPTO: BTC) he acquired in 2014 and Binance’s native crypto token Binance Coin (CRYPTO: BTC), where he keeps the majority of his net worth.
Price Action: At press time, Dogecoin was trading at $0.2313, down 3.12% in the last 24 hours. Binance Coin was trading at $569, down 2.14% over the same period. The leading digital asset Bitcoin was trading around $59,500, down 1.61% in the last 24 hours.
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