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 Stop Buying Memecoins Based on my Posts, CZ Warns

A collection of memes from memecoins forming an art work

 Stop Buying Memecoins Based on my Posts, CZ Warns

Binance former CEO Changpeng “CZ” Zhao has warned his followers not to buy memecoins based on his random X posts. However, the warning didn’t seem to pass the message he intended based on the responses from the community.

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CZ with over 10 million users said those who invest based on his random X posts are almost sure to lose money as such posts don’t necessarily mean he recommends or endorses the projects, even though he’s not against memecoins.

CZ Warns of Losing Money with Memecoins

Memecoins like Dogecoin and Shiba Inu have brought huge gains to early investors in the past years, especially in 2021 which is unofficially referred to as the year of memecoins. The top memecoins exploded that year, multiplying investments hundreds of times. Because of this past history, investors still look forward to such rewards with newer projects.

However, the new memecoin projects have been mostly disappointing as most of them are either outright scams or lack solid backing, hence they are not able to last long enough to bring any gains. Even with the current proliferation, only a tiny fraction of them make it to launch, making them particularly risky.

Moreover, memecoins are known to be highly volatile because they are driven mostly by sentiment and hype rather than by any real utility that gives them real value. Therefore they can easily crash to phenomenal lows, causing investors to lose almost everything at once.

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Interestingly, CZ’s followers seem undeterred by the warning he gave, and are still looking forward to buying memecoins recommended by the crypto mogul, as some are still asking him which projects to invest in.

CZ Supports Meme Community?

Although he had warned against buying memecoins based on his recommendations, CZ mainatains that he loves memes and is not against memecoins. Meanwhile, he also added that he was supporting the memeccoins, even though he quickly deleted the post. 

A screenshot of CZ’s X post

Apparently, he has also been favorable towards some memecoin projects which probably misled some of his followers to “ape” into such projects, leading to some losses. He recently predicted a crypto supercycle as the Securities and Exchange Commission (SEC) eased stance on crypto regulation. 

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