Binance founder Changpeng “CZ” Zhao advised crypto investors against purchasing a newly launched memecoin aimed at exploiting his fame, warning about the financial dangers of trading tokens linked to celebrities that lack genuine blockchain utility.
The memecoin surfaced shortly after a fan page created a golden statue of Zhao, sharing images and proposing to send it to the head of the world’s largest crypto exchange.
Zhao cautioned users in a Wednesday X post against buying the memecoin linked to the statue, noting that the token’s launch indicated the creators sought to “make a quick buck off an interaction” with him.
“While I appreciate the gesture, the existence of a meme coin associated with this suggests the creator likely aimed to profit quickly off my involvement,” Zhao remarked. “This is something I don’t endorse. Don’t purchase the meme.”
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Zhao-themed “golden statue” memecoin crashes 86% within hours
The launch of this latest Zhao-themed memecoin was not beneficial for its holders.
The CZ STATUE (CZ STATUE) memecoin’s price dropped 86% within hours after peaking at a market capitalization of $5.10 million around 10:00 am UTC on Wednesday, according to the crypto intelligence platform Nansen.
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Compounding worries about the memecoin, over 15% of the token supply was held by a newly created cryptocurrency wallet, indicating potential insider involvement and representing a “red flag” for its tokenomics, according to Nansen.
Despite their inherent lack of utility, BNB memecoins have previously generated new millionaires among crypto traders before a record $19 billion liquidation event earlier this month curtailed much of the speculative enthusiasm surrounding these tokens.
As memecoins depend entirely on social momentum to rise, securing a positive return is frequently a matter of luck.
At the start of October, a fortunate crypto trader transformed an initial investment of $3,000 into $2 million, achieving an astounding 650-fold return after a prior X post from Zhao propelled a BNB-native memecoin’s value upwards, Cointelegraph reported.
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