Binance Founder Urges Focus on Ethical Crypto Projects Over Quick Gains

Changpeng Zhao, the founder of Binance, has voiced his concerns over the growing trend of quick-profit hunting in the cryptocurrency world, particularly among speculative investors, or "degens."

He believes that rather than chasing short-term gains, focusing on solid, ethical projects is a far better strategy for long-term success.

Zhao criticized the rush into high-risk, low-cap tokens and memecoins, a behavior that has led many investors to suffer significant losses, especially through rug pulls and scams.

He emphasized that the pursuit of fast rewards in the crypto space is often a costly venture, with few seeing a return on their investments. Instead, Zhao advocates for supporting trustworthy, well-established teams that are building projects with lasting value and real-world utility.

In his advice to crypto projects, Zhao suggested new tokenomics models designed to prevent fraudulent activity. His approach calls for restricting token releases, unlocking only 10% initially, and tying further unlocks to specific milestones over extended periods, all controlled by smart contracts and third-party oversight. This, he believes, will provide more security and stability for investors.

In addition to his commentary on investment strategies, Zhao has shown his support for those affected by the collapse of certain memecoins, such as BROCCOLI and TST, by raising over $1 million in crypto donations. He also expressed his belief that artificial intelligence projects can greatly benefit from leveraging Layer 1 and Layer 2 blockchains to meet their scalability and decentralization goals.