Interest in cryptocurrencies ‘all-time high’ amid coronavirus outbreak, people see ‘buying opportunity’
The markets have been shaken by the COVID-19 pandemic, but the current circumstance only opens the door for digital assets.
Kris Marszalek, CEO and co-founder of Crypto.com, told Coindesk that the interest in cryptocurrencies has reached an “all-time high” amid the coronavirus outbreak. In fact, the transactions on crypto exchange Crypto.com have more than doubled between December and February and the app downloads have also significantly increased.
“We saw a million users on our platform last September, and we continue to grow on a monthly basis in double-digit terms,” said Marszalek.
Crypto.com is based in Hong Kong and offers users app-based trading services and crypto payment solutions through a Visa-powered bank. When it was still known as Monaco it raised a total of $26.7 million in an initial coin offering (ICO) in 2017. It changed its name to Crypto.com after purchasing the domain name for $10 million in 2018.
The impressive growth of cryptocurrencies could be due to the radical steps that central banks are taking to stabilize the financial markets. On Monday, the Federal Reserve launched quantitative easing (QE) with the scope to purchase an unlimited amount of Treasury bills and mortgage-backed securities.
“People are very interested in crypto in this challenging time,” he added explaining that digital assets offer investors an independent store of value and serve as a potential hedge from the side effects of QE.
Meanwhile, for the retail investors’ perspectives, the current situation gives them a “buying opportunity.”
“Crypto was built for a crisis like this. February was a record month, and March looks to be even better,” Marszalek added.
Binance.US CEO Catherine Coley shared that her firm experienced “unprecedented trading volumes” too with a particular interest in stablecoins and bitcoin (BTC). She is enthusiastic that crypto will survive.
“Bitcoin’s recent jump while the rest of the market tumbles proves that unlike traditional companies, Bitcoin can and will survive without bailouts,” she said.
Coley also urged the government to use stablecoins for emergency funds. She also explained that they are safe and fast because they can be distributed digitally.
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