Binance founder Changpeng “CZ” Zhao cautioned crypto investors against purchasing a newly launched memecoin that aims to exploit his popularity, highlighting the financial dangers involved in trading tokens linked to celebrities that lack genuine blockchain utility.
The memecoin appeared soon after a fan page constructed a golden statue of Zhao, sharing images and offering to send it to the leader of the largest crypto exchange globally.
Zhao advised followers in a post on X not to invest in the memecoin linked to the statue, as its launch indicated that the creators aimed to “profit quickly from an interaction” with him.
“I appreciate the gesture, but the existence of a meme coin tied to this means the creator likely just sought to profit from my involvement,” Zhao remarked. “This is not something I support. Avoid purchasing the meme.”
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Zhao-themed “golden statue” memecoin crashes 86% within hours
The recent launch of a Zhao-themed memecoin turned out to be unprofitable for its investors.
The CZ STATUE (CZ STATUE) memecoin’s value plummeted 86% within hours after reaching a market cap of $5.10 million around 10:00 am UTC on Wednesday, as noted by the crypto intelligence platform Nansen.
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Compounding worries about the memecoin, over 15% of its token supply was retained by a newly created crypto wallet, suggesting possible insider trading and raising a “red flag” regarding its tokenomics, according to Nansen.
Despite their inherent lack of utility, BNB memecoins have generated new millionaires among crypto traders, prior to a record $19 billion liquidation event earlier this month which dampened the speculative fervor supporting these tokens.
Given that memecoins depend exclusively on social trends for value increases, achieving a positive return is often contingent on luck.
At the start of October, a fortunate crypto investor transformed an initial $3,000 investment into $2 million, realizing an astounding 650-fold return after a prior X post from Zhao caused a BNB-native memecoin’s value to soar, as reported by Cointelegraph.
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