Want to Make Money in Crypto? You Are Doing It Wrong According to CZ Binance
Former Binance CEO Warns of Short-Term Hype, Urges Focus on Sustainable Growth
Binance founder Changpeng Zhao, CZ Binance, has been a vocal stakeholder in the crypto industry. He never stops sharing new ideas or insights on the markets, investor behavior, and regulation.
Recently, the CZ has sparked a debate on how people make and lose money in crypto, insisting that greed for short-term goals is the pit that’s swallowing investors up. Let’s dissect the topic, see where the truth lies, and what other investors think.
Greed - The Snare of the Common Man
CZ expressed his concern with crypto investors chasing short-term gains at the expense of safety, certainty, and security in their investments in a post on X.com on March 9, 2025. In his tweet, he advised investors to focus more on ethical teams that are building out for the long term.
“Unpopular opinion: In crypto, too much money is spent chasing small, quick gains. Focus on ethical teams that build for the long term. Big money is built slowly with stamina.” CZ, Binance.
Digging deeper, crypto investors have been caught in scams, rug pulls, and other types of swindles in the crypto industry due to greed. The typical emotional investors rush in with FOMO (Fear Of Missing Out) every time they hear about a good token or one everyone is mooning into.
One of the biggest rug-pull sandboxes is in meme coin trading. Driven by hype and greed for profits, everyone is there to enter early and leave earlier than everyone else, extracting liquidity from those who invest later in the cycle. This vicious cycle fails to sustain such projects, and they end up collapsing.
Binance released research in November 2024 detailing that 97% of all meme coins created at the time had died. The research captured multiple angles, including why the meme coin craze is a thing and the risks associated with it.
Reasons for rapid memecoin growth
Increase in global money supply
Loss of trust in financial system
Investment trend in new generations
Risks involved
Low survival rates - 97% of memecoins have died out with trading volume almost zero.
Lack of technological innovation for industry development
Rug pulls by coordinated attacks
Dig Deeper
“Buy when there’s blood in the streets,” Nathan Mayer Rothschild. Nathan Rothschild is a well-known investment banker from the 19th century and is widely attributed to this quote. The main aim of this quote was to advice investors to enter markets when the fear is at the highest and selloffs have happened to maximize profits rather than chasing the train when it has already left the station.
In CZ’s message, he asks investors to “focus on ethical teams that build for the long term.” He further explains that “Big money is built slowly with stamina.” Taking big coins into account, let’s say Bitcoin, this strategy seems to prove CZ right.
If you take Bitcoin and group its checkpoints into four year cycles (same with its halving cycle) the price is always at an upward trajectory though not as sharp as hype driven coins.
DYOR, no part of this article is financial or investing advice.