At a Glance
- Binance co-founder Changpeng “CZ” Zhao defended his buy-and-hold approach after critics said it misled traders.
- He clarified that the strategy applies only to selected coins and compared crypto to early tech cycles.
- The comments reignited past accusations of market manipulation and prompted calls for stricter listing standards.
- Why it matters: The debate highlights tension between open listing and investor protection in the crypto ecosystem.
The Binance co-founder’s recent remarks have stirred a heated discussion among traders and regulators. Zhao defended his long-standing buy-and-hold stance, insisting that critics twisted his words and ignored the importance of careful coin selection. The controversy has brought fresh attention to earlier allegations of market manipulation and has prompted calls for tighter quality gates on exchanges.
Timeline of Zhao’s Comments
- January 25: Zhao posted that few trading strategies beat buy-and-hold, stressing it was not financial advice.
- January 28: He clarified that the advice does not apply to every coin and accused the backlash of being driven by fear, uncertainty, and doubt.
- January 13: Earlier in the month, he warned that meme coins inspired by his jokes could lead to losses.
- Recent: StrongHedge and Leonidas revived accusations of market manipulation, while Zafer Erel defended Zhao’s record.
Key Points from the January Posts
- Buy-and-hold is Zhao’s personal strategy.
- He stresses the need for coin selection.
- He draws parallels to early tech cycles where most startups failed.
Zhao’s Clarifications and Reasoning
Zhao explained that his advice “obviously does not apply to every coin” and that investors should research projects rather than buying everything listed. He compared crypto to the 1990s internet boom, noting that most startups failed while a few delivered large gains. He asked whether Nasdaq should have listed only the top internet companies in 1990, highlighting that future winners were impossible to predict at the time.
> “If you ‘buy and hold’ all crypto ever created, you know how your portfolio will perform,” Zhao said. “Selection matters and investors should research projects rather than buying everything listed on an exchange.”
He also pushed back against claims that exchanges should only list assets with near-certain success, arguing that giving early-stage projects a chance does not mean investors must buy them.
Criticism and the Debate
Critics argued that blanket buy-and-hold messaging ignores the high failure rate of crypto projects. They contended that the strategy could mislead retail traders into holding assets that may never recover.
Social Media Backlash
- StrongHedge called Zhao “crypto’s biggest scammer” in a long thread on X, repeating claims about past market manipulation and his 2023 U.S. conviction.
- Leonidas, a crypto podcaster, echoed the criticism, accusing Zhao of extracting large sums from the market.
- Zafer Erel countered, highlighting Zhao’s role in onboarding millions of users, freezing scam-related funds, and donating to disaster relief.
The clash reflects a broader tension in crypto: the philosophy of open, permissionless listing versus calls for stricter quality gates to filter out potential scams.
Impact on Market Sentiment
Zhao’s statements have influenced sentiment on Crypto Twitter, with users divided between blaming influencers and questioning exchange practices. The debate underscores the fragility of trust in a market where information can be rapidly amplified.
Timeline of Allegations
| Date | Event | Source |
|---|---|---|
| 2023 | Zhao’s U.S. conviction related to compliance failures | Court records |
| January 13 | Zhao warns against treating jokes as investment signals | X post |
| January 25 | Zhao posts about buy-and-hold strategy | X post |
| January 28 | Clarification post | X post |
| Recent | StrongHedge’s accusations | X thread |
Key Takeaways
- Buy-and-hold is a personal strategy, not blanket advice.
- Investors should focus on coin selection and research.
- The debate highlights the need for balance between open listing and investor protection.
- Past allegations continue to surface, affecting public perception of Zhao and Binance.
- Market sentiment remains split, with influencers and exchanges both under scrutiny.
The controversy demonstrates how a single statement from a high-profile figure can ignite widespread debate, prompting calls for clearer guidelines and stricter oversight in the rapidly evolving crypto space.
