Binance founder Zhao Changpeng (CZ) recently posted on social media platform X, strongly criticizing the prevailing short-term speculative culture in the cryptocurrency market. CZ bluntly pointed out in his post: "Unpopular opinion: Too much money in the crypto industry is spent chasing small, quick profits. We should focus on ethical teams that are working hard for long-term building. Wealth is accumulated slowly through perseverance." This statement was made following a series of high-profile 'pump' events, attracting widespread attention within the industry. According to CZ's observations, investors often invest large amounts of money into low market cap tokens and meme coins in the pursuit of quick profits, blindly entering leveraged positions without adequate research; however, these investors rarely manage to recover their principal. Participants in the crypto market known as 'Degens' are keen on high-risk speculation, resulting in significant losses for many during 'pump' events, liquidity depletion, and exit scams.

CZ emphasized that investors should turn their attention to those 'ethical teams' that are dedicated to the long-term growth of projects rather than short-term speculation. Although he did not explicitly mention which projects are trustworthy, his comments suggest that teams with mature members and communities, and those building projects with real utility, are worth investing in.

Short-term speculation harms industry stability and innovation

Zhao Changpeng's remarks directly pointed to the serious negative impacts brought by the speculative nature of the crypto market. Cryptocurrencies have historically been seen as a tool for getting rich overnight, attracting investors with promises of quick wealth. However, this excessive speculative behavior is damaging the overall stability of the industry.

Overhyped projects not only foster the development of low-quality projects but also lead to distorted asset pricing. When speculative bubbles burst, they often trigger market crashes, with investors becoming the ultimate victims. The U.S. Securities and Exchange Commission (SEC) has stated that meme coins do not fall under the category of securities, but still urges investors to be cautious of the speculative investment risks associated with such assets.