by Reza Ali
Former Binance CEO Changpeng Zhao once again brings his thoughts on the state of the cryptocurrency market. In a Twitter/X post, Zhao, has seemingly been critical of prevailing investment culture, arguing that its main fuel is greed and a search for quick profits.
Traders who get so caught up with short-term, fast profits are really hurting the survival and the long haul potential of a business, he said, adding that this is why he was criticizing them. CZ encouraged crypto development teams to instead work on developing ‘ethical projects’ that mature for the long haul rather than focusing on short-lived price surges.
https://twitter.com/cz_binance/status/1898771896470012353
Former Binance CEO CZ Warns Against Speculative Trading in Crypto
Zhao’s comments follow a volatile Bitcoin price and ripple of hot shot coins, which are in the realm of meme coins. Zhao says the market model is unsustainable it is extremely sensitive to macroeconomic swings and has yielded to price manipulation.
The key point that CZ expressed through his presented comments is a direct attack on the dominant investment strategy of many of the traders that are making quick profits rather than long term value.
What they do in this strategy is ‘Chasing small gains’ by gambling with speculative investments, the most popular of which are meme coins which often don’t have actual application value. In such an approach, former Binance chief not only said that the market volatility is increased, but also it creates categories that discourage meaningful blockchain innovation.
Zhao believes that sustainable profits in the crypto space come from the well built projects that have taken the test of time. He said hype around ‘speculative’ crypto assets also serves to spread low quality projects and skew the values of digital assets too. He said that small traders now holding worthless investments will be left eating the crumbs when these speculative bubbles burst.
Long-Term Success Over Hype: Zhao’s Vision for the Crypto Industry
CZ includes, that this culture of short term speculation has been an integral part of the cryptocurrency world for ages, where many are dreaming to be rich overnight. Although this has made instant millionaires, it has also resulted in repeated market crashes causing investor confidence to shake.
To have long term success, Zhao thinks the industry now needs to take a step away from hype to create more value for customers. Although most digital assets are speculative, some projects have managed to do well, which has earned them credibility from experienced crypto investors.
For all of their good and bad, Bitcoin has always been the most dominant digital asset running and taking with them increasing adoption by traditional financial institutions. The maintenance of focus on long term development and technological improvements is another highly noted example, and it relates to Cardano.
Zhao’s message reflects a growing sentiment in the crypto space as it states that investors need to take a price out of the equation as much as possible and support projects delivering real world use cases. Ethically, blockchain technology powered by innovation might be the very hope of the future for the people; far more so than the illusory gains of speculation.
#blockchain #crypto, #decentralized, #distributed, #ledger
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