Changpeng Zhao (CZ), a leading figure in the cryptocurrency market, made important assessments regarding the industry and his investment philosophy at today’s Binance Square AMA (Ask Me a Question) event.
CZ delivered noteworthy messages, particularly regarding memecoins, his entrepreneurial experience, and investment strategies.
CZ, while answering users’ questions about memecoins, clearly stated that Binance would not offer specific support for any particular project. He noted that the BNB Chain ecosystem already supports memecoins through platforms like PancakeSwap, adding that investment decisions beyond that should be entirely up to the users themselves.
Touching upon his entrepreneurial journey, CZ said that he was involved in small-scale startups from a young age and, despite working for large companies, couldn’t adapt to the corporate structure. He stated that he preferred dynamic and free team environments to fixed work schedules, and openly admitted to having experienced numerous failed ventures. He advised entrepreneurs to pay attention to risk management, avoid excessive debt, and view investments as “investments” rather than “debt.” Recalling that he worked for 17 years before founding Binance, CZ noted that it’s quite rare for entrepreneurs to drop out of university and achieve rapid success.
CZ also shared his experiences regarding the writing process. He stated that writing a book is a long and arduous process, noting that initial drafts are often inadequate and require 10 to 20 revisions. Acknowledging that writing an autobiography might be unsettling for some, CZ emphasized the importance of telling his own story. He pointed out that the crypto sector frequently faces negative perceptions, and that his book aims to offer his perspective against these perceptions.
Speaking about his investment strategy, CZ said that predicting success in early-stage projects is difficult and that investment decisions largely depend on trust in the founders. He stated that investing in all projects is impossible, noting that a healthy portfolio might have a failure rate of 70-80%, but successful projects can yield 10 to 100 times the initial investment, resulting in overall positive outcomes. He specifically mentioned that he prefers investing during bear markets, stating that teams that persevere through challenging conditions are more likely to succeed in the long term. He added that during bull markets, valuations tend to rise excessively, and he avoids projects with a mismatch between the product and its valuation.
*This is not investment advice.