CZ Warns Crypto Traders: Following His Jokes to Meme Coins Is a Path to Losses
Former Binance CEO Changpeng “CZ” Zhao has issued a blunt warning to cryptocurrency merchants, stating that buying meme cash impressed by his casual social media posts will virtually definitely end in monetary loss.
His feedback, made in a submit on X on January 13, highlighted a persistent concern of speculative mania in crypto, the place informal remarks from influential figures are misinterpreted as funding indicators.
The Risks of Turning Jokes into Investments
In the submit, CZ clarified that his random, typically “silly not-so-funny jokes” usually are not conceived as meme coin ideas. “I simply tweet as I do… not fascinated about memes (more often than not),” he wrote. The warning follows a sample the place builders immediately launch tokens linked to offhand feedback from outstanding personalities, creating dangerous belongings with little substance.
It sparked a wave of reactions throughout Crypto Twitter, with some customers mocking the habits of merchants who rush into joke-based tokens, whereas others questioned Binance’s personal function in meme coin tradition. One reply pointed to previous listings, asking whether or not Binance had beforehand listed a meme coin tied to Zhao’s canine.
Several commentators took a broader view. For occasion, Onramp Money cautioned that turning jokes into “monetary recommendation” via prompt token launches virtually all the time leads to losses and urged merchants to do their very own analysis. Another consumer mentioned some networks have actively pushed meme tasks to carry transaction exercise, even when it meant retail merchants would probably be harm.
The dialogue additionally sparked a debate in regards to the high quality and cultural basis of meme tasks. Some neighborhood members argue that the core concern is a lack of assist for natural, community-driven meme cash with real narratives. User 0xMo.eth suggested that BNB Chain management ought to assist “actual, natural meme cash which might be constructing real communities, not simply chasing short-term tendencies.”
This criticism is just not new. Back on January 8, BNB Chain supporter Hinata expressed a want for Binance management to develop a deeper understanding of meme tradition, noting that many listed meme cash “lack a actual story, character, or narrative,” inflicting them to rapidly lose worth after preliminary curiosity.
A Pattern of Hype, Losses, and Trust Issues
Zhao’s submit landed at a time when meme cash are regaining consideration. As CryptoPotato reported final week, retail curiosity returned alongside ETF headlines and short-term market information, with belongings like Dogecoin (DOGE) benefiting from structured merchandise tied to its worth. Whale exercise has additionally increased, particularly round FLOKI, PEPE, and Shiba Inu (SHIB), the place massive transactions and social chatter have moved costs rapidly.
While enthusiasm is again, current incidents underline the dangers related to the asset class. In early January, a low-liquidity meme coin on Binance skilled excessive volatility linked to suspicious buying and selling habits, permitting a expert dealer to profit whereas others had been whipsawed.
Furthermore, in December 2025, hackers used a compromised social account belonging to Binance co-CEO Yi He to promote a meme coin, leading to a pump-and-dump that earned scammers about $55,000.
The submit CZ Warns Crypto Traders: Following His Jokes to Meme Coins Is a Path to Losses appeared first on CryptoPotato.
