Binance’s ex-CEO Changpeng Zhao has given a bright warning regarding memecoins based on his social media activity to his millions of followers.
Zhao, who is commonly referred to by his initials CZ, put the message on X that his posts should not be recognized as investment advice or endorsements for his almost 10 million followers. He pointed out that people who are making financial decisions according to his casual or random posts are likely to lose their money.
The warning is exemplary for retail investors that keep trying to get the same amount of money as during the 2021 memecoin boom, when there was high volatility and sharp losses for latecomers.
CZ also made it clear that he is not against memecoins. He stated his enjoyment of meme culture, however, he also firmly pointed out that there is a big difference between personal interest and giving financial advice.
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CZ’s Warning Fails to Deter Memecoin Speculation
The warning seems not to have influenced the crypto community dramatically. A lot of followers still approach Changpeng Zhao asking for investment tips, and some even direct their inquiry specifically on which memecoin projects to back. Such a response is indicative of the retail investors’ strong belief that popular personalities can still lead them to the right places those with the best returns.
This sort of conduct is a signal of a beneficial trend for the price of the stock in question where the investor base relies on the direction offered by the influential personalities. There are cases where the memecoin sector is very clear with such trends since prices can go up or down sharply as a result of social media posts mentioning them even if the statements do not have strong fundamentals.
Zhao’s past social media activity might have created some confusion. He had a message that was perceived as supportive of memecoins, which he then deleted shortly afterwards. The withdrawal of the post led to more rumors about the possibility of Zhao.
