The founder of Binance, Changpeng Zhao (CZ), has voiced concerns over the crypto community’s obsession with short-term profits. In a recent post on X, he criticized the trend of investors pouring significant amounts of money into high-risk trades, often in pursuit of quick gains.
The ‘Degen’ Mentality in Crypto Trading
Many traders engaging in this high-risk strategy are often labeled as ‘degen,’ a term used for those who invest impulsively without assessing the risks. The allure of fast profits drives them to chase any promising opportunity, often disregarding the potential downsides. This reckless approach frequently results in substantial financial losses, as seen during recent market downturns.
CZ’s Wealth-Building Advice: Focus on Long-Term Utility
According to CZ, investors should shift their focus to ethical teams committed to building sustainable and innovative blockchain projects. He emphasized that real wealth is built through patience and long-term vision rather than short-term speculation. Ethical teams prioritize long-term impact, creating solutions with real-world applications rather than relying on hype-driven narratives.
CZ has long been an advocate of blockchain projects with utility. In 2023, he urged the crypto community to invest in projects that provide practical applications rather than meme-based tokens. His latest statement reiterates his belief that “big money is built slowly with stamina,” stressing the importance of persistence in wealth accumulation.
Long term gains are the biggest gains.
— CZ 🔶 BNB (@cz_binance) January 27, 2023
Crypto Market Volatility and Liquidations
CZ’s advice comes at a time of heightened market volatility. Bitcoin recently plunged from a 24-hour high of $86,000 to $80,052, marking a sharp 6.91% decline. This downturn triggered widespread liquidations, wiping out $628.86 million in positions over the past 24 hours, according to Coinglass data. Long positions bore the brunt, accounting for $534.70 million in liquidations, while short positions saw $94.16 million erased.
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Despite these fluctuations, long-term investors holding utility-based tokens remain optimistic about the future. Many believe that staying invested in fundamentally strong projects will yield substantial returns over time, aligning with CZ’s perspective on sustainable wealth-building in the crypto space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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