Binance founder Changpeng Zhao (CZ) poked holes at degens over the rush for quick and easy gains in the cryptoverse. CZ says pitching tents with credible projects is a better investment strategy in the long term for investors in the space.#<\/p>\n
A Fortune Is Spent Investing In Shady Projects, Says Binance Founder<\/h2>\n
CZ has taken swipes at \u201cdegen\u201d activity in cryptocurrency circles following a string of high-profile rug pools. According to the Binance founder, investors are sinking in massive fortunes to clutch at quick rewards in the ecosystem.<\/p>\n
The Binance founder disclosed<\/a> on X (formerly Twitter) that investors rarely recoup their funds in the pursuit of quick gains. Degens typically invest in low-cap tokens and memecoins, aping into leveraged positions without proper research.<\/p>\n CZ advises investors to turn their gaze to \u201cethical teams\u201d building projects for long-term growth, rather than short-term hype. Investors chasing trends and hype have lost a fortune in rug pulls, liquidity drains, and exit scams. The US SEC has disclosed that memecoins are not securities<\/a>, urging investors to be wary of speculative investment in the asset class.<\/p>\n \u201cIn crypto, too much money is spent chasing small, quick gains,\u201d said CZ. \u201cFocus on ethical teams that build for the long term. Big money is built slowly with stamina.\u201d<\/p>\n While the Binance founder did not expressly mention credible crypto projects, his comments allude to teams with established members and communities building projects with real utility.<\/p>\n The Binance founder has offered suggestions for crypto project tokenomics designed to reduce rug pulls. According to CZ\u2019s plan, only 10% of tokens will be unlocked while the remaining tokens will require the fulfillment of strict conditions before an unlock.<\/p>\n Under the proposal, issuers will unlock new tokens after every six months with only 5% of tokens allowed to be unlocked. CZ\u2019s tokenomics plan<\/a> will rely on smart contracts to control the vesting schedule and third parties to hold the keys.<\/p>\n CZ has since rolled out support for victims of BROCCOLI and TST memecoin crashes, raising over $1 million in cryptocurrencies. The Binance founder says that AI projects can leverage L1 and L2 blockchains<\/a> to achieve efficiency and decentralization objectives.<\/p>\n \u2713 Share:<\/p>\nCZ Offers Suggestions on Tokenomics For Crypto Projects<\/h2>\n
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