Changpeng Zhao, the founder of Binance, the largest cryptocurrency exchange platform, has warned cryptocurrency traders of the dangers of digital assets as the market slumps.

According to some crypto experts, the value of the cryptocurrency market fell by -49.6 percent between January and August 8, resulting in a loss of $1.11 trillion in bitcoin and other cryptoasset investments held by investors.

The most widely used cryptocurrency, Bitcoin, has experienced a decline of -47.9 percent year to date, losing $22,206.78 in market value in just eight months to trade at $24,104.96 as of August 8, 2022, according to analysis.

The founder of Binance stated that the digital currency business is extremely dangerous since the market capitalization has decreased from $2.24 trillion to $1.13 trillion in just eight months. This might make people more skeptical, delaying widespread adoption.

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Zhao informed his 6.7 million Twitter followers on Sunday that the cryptocurrency market is also erratic in a tweet. "Crypto is high risk, high volatility," he wrote.

The current bear market, according to Zhao's comments from last month, is nothing new for long-term cryptocurrency investors. "In crypto, most OGs had to go through one bear cycle where people laughed at them," he said. Those that invested in or held during the bear markets of 2018–2019 ($3,000) and 2014–2015 ($200) are doing well now. And @saylor and @nayibbukele will be fine.

Even if there is still opportunity for increased adoption of cryptocurrencies, he had stated in July that there is still market pessimism, and this will damage cryptocurrency projects, "Mass consumers still have a lot of suspicion about cryptocurrency, and what's bad for one project usually hurts other initiatives as well. The market is also far from being saturated. It's a phase of maturing together, his tweet stated.