Community AMA Insights
Changpeng Zhao (CZ), founder and former CEO of Binance, recently participated in a Chinese-language Ask Me a Question (AMA) event held at Binance Plaza, addressing various topics with the community.
Views on Memecoins
CZ expressed his fondness for memecoin culture, although he clarified that he is not actively involved in memecoin trading. His primary focus, he stated, is on enhancing the BNB Chain infrastructure to better cater to users' investment and trading requirements. He characterized the early advantages some investors gained in the memecoin market as a "reflection of decentralization." CZ also emphasized that early entrants face considerable risks and that later investors must conduct their own thorough research, indicating that he doesn't foresee a need for third-party intervention at this stage.
He further commented that genuinely successful memecoins often possess "historical anecdotes and stories." CZ reiterated that over 90% of memecoins ultimately fail and stressed that investors bear responsibility for their own decisions. He also mentioned that while he prefers his posts and those of Binance co-founder He Yi not to be excessively followed by speculators, he does not intend to cease posting.
Market Outlook and Altcoin Season
Regarding short-term market movements, specifically over the next 3-4 months, CZ acknowledged their unpredictability, humorously remarking, "Even the US President can’t predict this clearly." However, he firmly believes that an altcoin season is inevitable, explaining that the market progresses in cycles and that transactions will eventually extend beyond Bitcoin. CZ reminded attendees that Bitcoin primarily functions as a "store of value" and lacks smart contract capabilities. He anticipates that public blockchains, applications, and infrastructure projects will continue to carve out their place in the market.
Long-Term Bitcoin Optimism and BNB Ecosystem
CZ maintains a long-term optimistic outlook for Bitcoin, stating, "It will reach $200,000 sooner or later; there’s no peak signal yet." He also conveyed pride in the BNB ecosystem, highlighting its stability and the substantial number of active developers. While CZ holds a significant amount of BNB, he refrained from providing a specific price target but affirmed its continued upside potential.
Warnings for New Investors
CZ strongly advised new investors, in particular, to steer clear of futures trading. He highlighted that the potential losses stemming from high volatility and leverage can be immense. He reiterated the critical importance for investors to conduct their own research and assume accountability for their investment decisions.
Prediction Markets and Future Potential
CZ also addressed prediction markets, suggesting they could evolve into a significant sector in the long term, though he noted they are currently in their nascent stages. Citing Polymarket as an example, he pointed out that the market currently has a limited number of strong market makers and faces ongoing uncertainties related to regulations and competition.
X Platform and Cryptocurrency Integration
In his discussion, CZ touched upon the possibility of the X platform integrating cryptocurrency investments. He reminded the audience that Binance Square users have already completed the Know Your Customer (KYC) process and are capable of trading directly. However, he suggested that users might be required to undergo the KYC process for any smart asset tags or potential trading features that X might introduce in the future.