CZ's New Book and Its Implications for Crypto Investment Strategies

Changpeng Zhao (CZ), founder of Binance, is set to release a book in 2025 that delves into his investment philosophy, professional journey, and insights into the cryptocurrency industry. This work, which has been in development for over a year, is expected to shape the discourse on long-term crypto asset allocation and risk management. By decoding CZ's outlined principles, investors can gain a framework for navigating the volatile crypto market while prioritizing fundamentals and mission-driven innovation.

Fundamentals and Long-Term Strategy: A Core Tenet

CZ's book emphasizes a disciplined approach to crypto investing, urging investors to focus on fundamentals rather than short-term speculation. He advocates for patience, noting that "time will ultimately favor those who maintain a patient and strategic approach". This aligns with broader industry trends, such as the growing adoption of dollar-cost averaging (DCA) and the shift toward viewing Bitcoin as a long-term asset class. CZ's perspective is particularly relevant in light of recent market dynamics, including the September 2025 cooling trend, where most major tokens declined but Bitcoin retained its value.

The book also highlights the importance of evaluating projects based on product utility, user growth, revenue potential, and team strength. For instance, CZ's focus on Web3 infrastructure, AI, and decentralized science (DeSci) underscores his belief in projects with tangible real-world applications. This contrasts with speculative assets like meme coins, which CZ cautions against due to their lack of long-term utility.

Risk Management and Market Cycles

CZ's investment philosophy integrates robust risk management strategies, including diversification, stop-loss orders, and investing only what one can afford to lose. These principles are critical in navigating crypto's inherent volatility, especially during market downturns. The September 2025 selloff, for example, demonstrated the need for such frameworks, as even seasoned investors faced significant drawdowns.

The book also addresses the role of market cycles, with CZ suggesting that Bitcoin may be entering a "supercycle" driven by institutional adoption. This could redefine traditional four-year price patterns, leading to a more sustained bullish trend. By treating Bitcoin as a strategic allocation rather than a speculative trade, investors can mitigate risks associated with short-term volatility.

Founder-Driven Projects and Mission Alignment

A recurring theme in CZ's work is the importance of mission-driven founders. He emphasizes transparency, community consensus, and the sustainability of a project's vision. For example, Binance's investments in projects like YZi Labs-a time-based crypto platform with a developed minimum viable product-highlight CZ's preference for teams with clear, executable plans. This approach contrasts with the speculative frenzy surrounding projects lacking a defined utility or governance model.

CZ's critique of the crypto market's speculative nature further reinforces this philosophy. He warns that "only a small percentage of investors will succeed in the long run", advocating for disciplined strategies over active trading. This aligns with the broader industry shift toward evaluating projects based on their ability to solve real-world problems, such as energy optimization for high-performance computing.

Implications for Long-Term Crypto Asset Allocation

CZ's book offers actionable insights for investors seeking to build resilient crypto portfolios. By prioritizing fundamentals, adopting DCA strategies, and focusing on founder-driven projects with real-world utility, investors can better navigate market cycles. The emphasis on Bitcoin as a long-term asset-potentially entering a supercycle-further underscores the need to treat crypto as a strategic allocation rather than a speculative bet.

Moreover, CZ's caution against over-speculation and his focus on risk management frameworks (e.g., operational due diligence for institutional investors) provide a blueprint for balancing growth and stability. This is particularly relevant as digital asset treasuries and decentralized exchanges (DEXs) gain prominence, reshaping the landscape of crypto trading.

Conclusion

Changpeng Zhao's upcoming book is poised to redefine how investors approach crypto asset allocation. By emphasizing fundamentals, long-term patience, and mission-driven innovation, CZ offers a counterpoint to the market's speculative tendencies. As the industry matures, his philosophy-rooted in risk management and strategic alignment with real-world utility-could serve as a guiding framework for both retail and institutional investors.