The post Binance Founder Changpeng “CZ” Zhao’s Memecoin Warning: ‘Stay Away From Memecoins If You Can’t Handle Volatility!’ appeared on BitcoinEthereumNews.com.

Binance founder Changpeng “CZ” Zhao has issued a cautionary statement about the growing memecoin craze, stating that many investors are looking for quick profits rather than primarily caring about the projects themselves. CZ Warns About Meme Coin Craze, Highlights BNB Chain Performance Issues CZ touched on the growing popularity of memecoins in a post he shared on social media, saying: “People say they like memes. What they really mean is that they want to be told which tokens to buy for quick profits (like when they ask ‘Which CA?’). Unfortunately, I can’t, won’t, and don’t know how.” While BNB Chain’s meme coin ecosystem is experiencing rapid growth, it is also facing technical challenges due to increasing demand. BNB Chain Faces Performance Issues Amid Meme Coin Surge CZ acknowledged that multiple platforms and dApps within the BNB Chain ecosystem experienced performance issues last night. He emphasized that these platforms are built and maintained by independent teams who are actively working to improve system stability. “The good news is that the demand is there and the platforms will evolve, even if there are some growing pains,” he added. CZ also highlighted an unusual trend: According to Dex Screener, there are six different “BROCCOLI” projects on BNB Chain with a total market value exceeding $200 million as of press time. “I’m not even sure if this is good or bad, or if I’m reading the data correctly,” he said, raising questions about the sustainability of such speculative investments. Meme Coin Risk Warning CZ issued a strong warning to traders, advising them to manage their risks carefully and avoid memecoins if they cannot handle high volatility. “If you can’t handle the downside volatility, don’t touch memecoins,” he warned. The statement comes amid a broader meme coin craze across multiple blockchain networks, with speculative assets…

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Filed under: News - @ February 14, 2025 9:27 pm