Why Changpeng Zhao Believes Holding is Key to Getting Rich in Crypto
Changpeng Zhao, better known as CZ, the co-founder of Binance, has once again emphasized his well-known mantra about cryptocurrency investing, “If you can’t hold, you won’t be rich.” First uttered in February 2021, this statement now stands as a key principle in Zhao’s philosophy on crypto markets. As the crypto market recently faced turbulence, Zhao repeated his words with a laugh, noting, “4 years ago today. Some things never change.” This assertion marks a pivotal moment in understanding how Zhao views the future of cryptocurrency markets and their cyclical nature.
CZ’s Theory on the 4-Year Market Cycle
One of the most notable aspects of Zhao’s strategy is his belief in the four-year cycle theory. According to Zhao, the cryptocurrency bull market follows a clear pattern of every four years, with bear markets and recovery periods in between. The last significant rally occurred in 2021, which leads many in the crypto world to speculate that 2025 will be the next period of explosive growth.
For Zhao, these cycles are intrinsic to crypto markets, and as long as investors remain patient, they will eventually see a return on their investment. Despite market turbulence, regulatory uncertainties, and macroeconomic shifts, Zhao’s outlook remains optimistic. He believes that as long as investors hold, they will eventually see success in the long term.
Meme Coins and CZ’s Neutral Stance
In addition to his perspective on long-term crypto cycles, Zhao recently clarified his stance on meme coins. While meme coins such as Dogecoin and Shiba Inu have garnered immense popularity, CZ confirmed that he has never purchased any meme coins, maintaining a neutral stance on their place within the broader crypto ecosystem. He explained that his position on meme coins does not equate to opposition.
Zhao highlighted his approach to investments, noting that although he has not invested in meme coins, he supports the broader industry. Zhao compared his lack of interest in meme coins to his disinterest in things like sports cars and art collections, indicating that just because he doesn’t invest in these areas doesn’t mean he opposes them.
Binance’s Listing Process: A Competitive Market
CZ also clarified his involvement, or lack thereof, in Binance’s listing process. The listing of TST, a token originally created for educational purposes and later turned into a meme coin, raised questions among the community. Zhao made it clear that he was not involved in the listing of TST and that exchanges, including Binance, operate in a highly competitive environment. Tokens with strong trader interest tend to attract listings naturally, removing the need for direct outreach to exchanges.
This aligns with his broader philosophy: successful crypto projects focus on development and market traction, rather than seeking quick listings on exchanges.
Why Are Meme Coins So Popular?
Zhao speculated on the rise of meme coins, pointing out that regulatory challenges faced by more traditional utility tokens have led many projects to shift toward meme-based assets. Meme coins tend to attract higher trading volumes due to their volatility, which is particularly appealing to speculative traders looking for short-term gains.
Furthermore, Zhao acknowledged that meme coins have gained traction due to cultural engagement and their ability to entertain communities. This sense of humor and collective identity has fueled the popularity of coins like Doge and Shiba Inu.
A Message for Builders in the Crypto Space
While the rise of meme coins may seem like a speculative trend, Zhao reiterated his commitment to building and supporting projects based on fundamentals. He advised crypto builders to focus on products that meet market demand while remaining cautious of taking excessive risks. For Zhao, the key to long-term success lies in the development of valuable projects that will have a lasting impact on the industry.
Final Thoughts on the Future of Crypto
Zhao’s 4-year cycle theory and his take on meme coins provide crucial insight into the direction of the crypto market. While short-term volatility and speculative trends, such as meme coins, continue to generate buzz, Zhao’s focus remains on holding and prioritizing long-term growth. Whether the market follows his predictions for 2025 remains to be seen, but Zhao’s consistent message of patience and focus on fundamentals sets the tone for what many hope will be another successful bull run.
As the crypto space continues to evolve, it will be fascinating to see whether history repeats itself, and if Zhao’s predictions for 2025 hold true, reaffirming his unwavering conviction in the power of holding and patience in the market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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