Binance Founder Warns Against ‘Degens,’ Pushes for Credible Crypto Projects
CZ is sounding the alarm on speculative trading in the crypto space. In a recent post on X (formerly Twitter), CZ called out degen investors – those who invest in low-cap tokens and memecoins without proper research.
[𝕏] #Binance Founder CZ Criticizes Short-Term Crypto Speculation, Urges Focus on Ethical Teams and Long-Term Growth$BNB
— BecauseBitcoin.com (@BecauseBitcoin) March 9, 2025
He said billions are lost each year due to rug pulls, liquidity drains and exit scams. The US SEC has also warned that memecoins are not securities, they are super volatile and unregulated.
Degens invest in low-cap tokens, ignore risks.
Most don’t recover their investment due to scams.
SEC warns against speculative memecoin trading.
“Too much money is spent chasing small quick gains in crypto,” CZ said. “Big money is built slowly with stamina.” He urged investors to focus on ethical teams building projects with real world use cases instead of hyped trends.
CZ Proposes Tokenomics to Prevent Scams
To prevent fraudulent token projects, CZ proposes a new tokenomics model to reduce the chance of rug pulls. His proposal includes strict unlocking conditions for tokens to prevent early investors from cashing out at the expense of retail traders.
Under CZ’s model:
Only 10% of tokens would be unlocked initially.
Subsequent unlocks would happen every 6 months with 5% released per cycle.
Smart contracts and 3rd party custodians would manage the vesting schedule.
By limiting immediate access to tokens, CZ’s plan aims to increase accountability of project teams and encourage long term development rather than short term profit taking.
Where is the evidence of Binance actively identifying and supporting long-standing projects that have been quietly building with a strong vision? If you genuinely believe in long-term value creation,
— Henri/ORBS Guardian/KOLB Comunity Founder (@HenriLee92) March 10, 2025
Support for Victims of Crypto Scams
CZ has also promised to support victims of crypto scams. After the BROCCOLI and TST memecoin crashes, Binance raised over $1 million in cryptocurrencies to help affected investors.
And CZ also mentioned AI and blockchain integration, that Layer 1 and Layer 2 solutions can help AI projects to be more efficient and decentralized.
As the market grows, CZ’s warnings remind us to do your own research and long term thinking in this space.
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