CZ's Altcoin Warning: My Past Experiences Should Be a Lesson

Binance founder Changpeng Zhao, commonly known as CZ, has drawn the attention of cryptocurrency investors with his recent statements regarding altcoin purchases. He emphasized the need for caution regarding the unpredictability of price movements, recalling his past large purchases and warning investors.

According to a report by Wu Blockchain, CZ mentioned that he bought Bitcoin when its price was at $600 in 2014, only to see it drop to $200 within a month. Similarly, he recalled a 2017 purchase of Binance Coin (BNB) where he experienced a 20–30% loss in value. These experiences indicate that CZ adopts a cautious approach to market fluctuations.

Yesterday, news emerged that CZ had acquired Aster (ASTER) tokens with his personal funds. However, he indicated that he would not share the details of the purchase to avoid affecting prices. Following this announcement, the value of ASTER rose by more than 20% in a short time, reaching $1.19. According to on-chain data, CZ holds approximately 2 million Aster tokens in his account.

CZ previously expressed his long-term investment strategy with the statement, “I am not a trader, I am a holder.” In this latest announcement, he stressed that individual investors should take market risks seriously. Following these comments, discussions about the "CZ effect" resurfaced among individual investors.

In conclusion, CZ's past experiences and warnings regarding altcoin purchases serve as an important lesson for investors to assess market risks. Another point for investors to consider is to remain rational in the face of market volatility and to make purchases and sales with proper timing.