In a recent deep-dialogue community event in Hong Kong, Binance founder Changpeng Zhao (CZ) shared his candid thoughts on the current state of the crypto market, the role of memecoins, and the importance of sustainable development in the blockchain ecosystem. He emphasized balancing short-term opportunities with long-term value creation, offering strategic insights for investors and builders alike.
CZ’s appearance at the BNB Chain Super Meetup was unannounced but highly anticipated. In a fireside chat with community representative “Master Brother Tu Ao,” he addressed pressing issues such as memecoin mania, shifting investor beliefs, and market volatility.
The Memecoin Frenzy and Market Health
When asked about the current market cycle and its apparent obsession with memecoins, CZ responded with a mix of pragmatism and caution.
“I think trading memecoins can be part of the crypto experience, but it shouldn’t be the only thing,” he stated. “The current overemphasis on memecoins is not healthy for the industry.”
He pointed out that while some participants seek high-risk, high-reward opportunities, the ecosystem also needs long-term builders. When attention is disproportionately focused on speculative assets, legitimate projects with real utility get overlooked. This, in turn, affects exchange listing strategies and overall community morale.
CZ acknowledged that finding a balance is not an overnight process. It requires sustained effort in supporting developers, encouraging real-world use cases, and fostering projects with genuine user bases and revenue models.
Is HODLing Still a Viable Strategy?
The conversation then turned to the famous HODL strategy, which CZ himself once championed with the phrase, “If you can’t hold, you won’t be rich.” Many early adherents have seen significant gains, but some feel “punished” in the current cycle.
CZ clarified that blind HODLing is not advisable. “You still need to look at technicals and fundamentals. You can’t just hold every token out there—most will go to zero.”
He emphasized that assets with strong fundamentals and practical utility are worth holding long-term. But this requires discernment and a willingness to research beyond hype.
Altcoins That Can Outperform Bitcoin
When asked if any assets besides Bitcoin have the potential to outperform it, CZ didn’t hesitate.
“Actually, several have already outperformed Bitcoin,” he noted. “For example, since its inception, Ethereum has outperformed Bitcoin. BNB has also outperformed both Bitcoin and Ethereum since its creation.”
He explained that while Bitcoin remains a reserve asset and will likely appreciate over time, its large market cap makes exponential growth more difficult. This creates opportunities for fundamentally strong altcoins to outperform Bitcoin—at least for certain periods.
CZ estimated that dozens, if not hundreds, of tokens could potentially outperform Bitcoin. However, identifying these opportunities requires deep industry knowledge and the conviction to hold through volatility.
The Future of BNB and Its Ecosystem
Community questions about BNB’s price prospects and ecosystem development were met with cautious optimism.
CZ avoided making specific price predictions, noting that market forces ultimately determine value. Instead, he focused on BNB’s growing utility—both within the Binance ecosystem and beyond.
“We’re continuously working to expand BNB’s use cases,” he said. “Whether it’s in centralized exchanges, decentralized platforms, DeFi, NFTs, or GameFi—each new application adds value.”
He also revealed that some countries have expressed interest in adopting BNB as a recognized digital currency, though these discussions are still in early stages.
When addressing criticism that large BNB holders enjoy too many benefits (like airdrops) and tend to sell off, hurting retail investors, CZ defended the community.
“Having more long-term holders is beneficial for the ecosystem,” he argued. “BNB is a limited supply asset, and committed holders contribute to its price stability. We should thank them.”
BNB Chain’s Challenges and Opportunities
Reflecting on BNB Chain’s development, CZ admitted that the platform has not reached its full potential.
“Honestly, I think BNB Chain is still underperforming,” he said. “During my time as CEO of Binance, I could dedicate more attention to it. Over the past year or so, my focus shifted to compliance and other global issues, which affected BNB Chain’s growth.”
He acknowledged that BNB Chain missed out on the memecoin trend compared to chains like Solana. But he assured the community that going forward, BNB Chain will be more agile in capturing emerging trends—whether in AI, DeSci, or other sectors.
“We’re investing heavily in infrastructure, DApps, and DeFi,” CZ added. “Building a strong ecosystem takes time, but we’re committed to supporting developers and innovators.”
Lessons from the Memecoin Experiment
CZ openly discussed his foray into memecoins, calling it a “learning experience” with mixed results.
“I made some mistakes,” he confessed. “When I posted dog photos on social media, I didn’t realize it would trigger hundreds of memecoin launches and create a PVP (player-vs-player) environment.”
He now believes that memecoins should be community-driven rather than influenced by figures like himself. While Binance will continue listing popular and compliant memecoins, CZ emphasized that sustainable growth comes from utility, not just hype.
“I don’t trade memecoins or NFTs myself,” he revealed. “I’m focused on building infrastructure and supporting the industry’s long-term development.”
Engaging with the Community
CZ also shared his approach to handling feedback—both positive and negative—from the community.
“I spend a lot of time on Twitter and value constructive criticism,” he said. “It helps us improve. I don’t take negative comments personally; instead, I try to learn from them.”
He encouraged open dialogue and noted that community input has led to meaningful changes in Binance’s operations and strategy.
Advice for Newcomers
For those entering the crypto space now, CZ offered practical advice:
- Start with a small investment and avoid risking more than you can afford to lose.
- Focus on fundamentals rather than chasing overnight gains.
- Consider dollar-cost averaging (DCA) into established assets like Bitcoin or Ethereum.
- Maintain a long-term perspective and don’t be swayed by short-term volatility.
“The industry is still in its early stages,” he reminded. “There will be ups and downs, but the long-term outlook is promising.”
Frequently Asked Questions
What did CZ say about Ethereum vs. Bitcoin performance?
CZ stated that since its inception, Ethereum has outperformed Bitcoin. He also noted that BNB has outperformed both over the same period.
Does CZ still believe in HODLing?
He advises holding only assets with strong fundamentals and real utility. Blind HODLing of any token is not recommended.
What is CZ’s view on memecoins?
He believes memecoins can be part of the ecosystem but shouldn’t dominate it. Sustainable growth requires supporting utility-driven projects.
How does CZ handle criticism?
He values constructive feedback and uses it to improve. He doesn’t take negative comments personally.
What is CZ’s advice for new crypto investors?
Start small, focus on fundamentals, use DCA strategies, and maintain a long-term outlook.
What are BNB Chain’s future plans?
The team is investing in infrastructure, DApps, and DeFi, and aims to better capture emerging trends like AI and DeSci.
Conclusion
CZ’s Hong Kong dialogue underscored the importance of balancing short-term opportunities with long-term growth. While memecoins and speculative trading have their place, sustainable value creation requires focusing on fundamentals, utility, and community development.
For those looking to deepen their understanding of market trends and investment strategies, 👉 explore more insights here. As CZ noted, the industry is still evolving, and those who prioritize learning and adaptation will be best positioned for success.