Binance Founder CZ: HODL Strategy Still Applies But Only for Tokens with Solid Fundamentals

Quick Take:

• While MEME coins bring short-term attention to the industry, the excessive speculation could undermine its long-term health.

• HODL strategy still applies but only to tokens with strong fundamentals.

• Binance will increase investments in BNB Chain infrastructure and applications development. AI and DeSci (decentralized science) as promising emerging areas.

According to Frank and Zen from PANews, on April 6, Binance founder and CEO Changpeng Zhao (CZ) shared his insights on MEME coins, HODL investment strategies, and the future of BNB Chain during the BNB Chain Super Meetup held in Hong Kong. The discussion provided a glimpse into CZ’s views on balancing short-term market dynamics with long-term growth in the crypto industry.

MEME Coins: Short-Term Hype Raises Concerns

CZ expressed concerns over the MEME coin frenzy currently dominating the crypto market. While MEME coins bring short-term attention to the industry, CZ warned that excessive speculation could undermine its long-term health. "The current MEME coin frenzy is too intense and unhealthy for the industry. We need to find a balance that supports short-term wealth effects while fostering long-term builders," CZ stated.

He emphasized the need for community-driven efforts to ensure sustainability and meaningful value creation for MEME coins. "MEME coins have their purpose, but their future depends on community efforts and value creation," CZ said.

He also clarified his personal stance, stating, "I don’t buy MEME coins or NFTs. I focus on building the industry’s infrastructure and supporting its foundation, not engaging in speculation."

HODL Strategy: Fundamentals Are Key

Addressing the popular "HODL" strategy, CZ reaffirmed its relevance but stressed that long-term holding should be based on solid fundamentals. He advised investors to avoid blindly holding all tokens, as many may lose their value over time.

"If you can't hold, you won't be rich," CZ reiterated. "But the premise is to choose tokens with strong fundamentals."

CZ highlighted Bitcoin’s role as a reserve asset in the crypto industry, noting its stability but limited potential for exponential gains. He also encouraged investors to identify tokens with real-world applications and innovative potential for better long-term returns.

BNB Chain and BNB Holders

Discussing BNB and its ecosystem, CZ emphasized expanding BNB’s applications across DeFi, NFTs, GameFi, and other areas. He acknowledged that BNB Chain’s ecosystem has not yet reached its full potential and pledged to focus on its development, particularly in emerging fields like AI and decentralized science (DeSci).

CZ also highlighted the importance of BNB holders in stabilizing the ecosystem and expressed his willingness to offer them more benefits as a way to reward their support.

"BNB holders are essential to the ecosystem's stability. We aim to give them back in various ways," CZ remarked.

Advice for Crypto Newcomers

CZ advised newcomers to enter the crypto market cautiously, invest small amounts, and focus on mainstream tokens. He recommended using dollar-cost averaging (DCA) to mitigate risks and emphasized patience, as long-term value takes time to materialize.

"The crypto industry is highly volatile. Focus on fundamentals and invest wisely," CZ said.