Binance Founder CZ Calls Out Degens as Crypto Market Sees Volatility

Binance founder Changpeng Zhao, commonly known as CZ, has recently criticized the behavior of "degens" in the cryptocurrency ecosystem, who are known for their pursuit of quick and easy gains. CZ argues that this approach is not sustainable and often leads to significant losses for investors. He advocates for a more strategic investment approach, focusing on credible projects with long-term growth potential.

CZ's criticism comes in the wake of several high-profile rug pulls and exit scams, where investors have lost substantial amounts of money. He points out that degens typically invest in low-cap tokens and memecoins, often without conducting proper research. This behavior, he says, is driven by the allure of quick rewards and the fear of missing out (FOMO).

In contrast, CZ advises investors to support "ethical teams" that are building projects with real utility and long-term growth prospects. He believes that focusing on such projects is a better investment strategy in the long run. CZ's comments suggest that he is referring to teams with established members and communities, who are committed to building sustainable projects.

CZ has also offered suggestions for improving the tokenomics of crypto projects to reduce the risk of rug pulls. His proposal includes a strict vesting schedule, where only a small percentage of tokens are unlocked at a time, and the remaining tokens are subject to strict conditions before they can be unlocked. This approach aims to ensure that project founders have a vested interest in the long-term success of their projects.

CZ's comments and suggestions reflect his commitment to promoting a more responsible and sustainable approach to investing in the cryptocurrency ecosystem. He believes that by focusing on credible projects and improving tokenomics, investors can better protect their interests and contribute to the long-term growth of the industry.