Binance founder Changpeng “CZ” Zhao has cautioned cryptocurrency investors against purchasing a newly launched memecoin designed to leverage his public image. Zhao highlighted the significant financial risks associated with trading celebrity-linked tokens that lack genuine blockchain utility.
The emergence of this memecoin followed the creation of a golden statue by a fan page dedicated to Zhao, with pictures shared and an offer made to send the statue to the founder of the world's largest crypto exchange.
In a post on X (formerly Twitter) on Wednesday, Zhao explicitly warned users not to buy the memecoin associated with the statue. He explained that the token's launch indicated the creators' intention to "make a quick buck off an interaction" with him.
“While I want to appreciate the gesture, the fact that there is a meme coin associated with this means the creator probably just wanted to make a quick buck off an interaction from me,” Zhao stated. “This is something I don't appreciate. Don’t buy the meme.”
Zhao-Themed "Golden Statue" Memecoin Plummets 86% in Hours
The newly launched memecoin bearing Zhao's likeness did not prove profitable for its holders.
The CZ STATUE (CZ STATUE) memecoin experienced an 86% price decrease within hours of reaching its peak market capitalization of $5.10 million around 10:00 AM UTC on Wednesday. These figures were reported by the crypto intelligence platform Nansen.
Further raising concerns about the memecoin's viability, Nansen identified a "red flag" in its tokenomics: over 15% of the token supply was held by a recently created cryptocurrency wallet. This concentration suggests potential insider activity.
Despite their inherent lack of practical utility, BNB memecoins have previously generated significant wealth for crypto traders. However, this speculative fervor was curtailed by a substantial $19 billion liquidation event.
Memecoins typically rely on social momentum for price rallies, making positive returns largely a matter of chance.
Earlier in October, a fortunate crypto trader reportedly turned an initial investment of $3,000 into $2 million, achieving a 650-fold return. This surge followed a previous X post by Zhao that significantly boosted the value of a BNB-native memecoin, as reported by Cointelegraph.