CZ Criticizes Short-Term Greed in Crypto Investing, What’s Up?

Jakarta, Pintu News – Binance founder Changpeng “CZ” Zhao has criticized the crypto investment culture that focuses too much on quick profits. Through a post on the X platform, CZ stated that too much capital is spent chasing small gains in a short period of time, while ethical long-term projects are often overlooked.

CZ highlighted the speculative nature of many altcoins that are prone to high volatility and market manipulation. According to him, short-term investments not only create instability, but also stifle innovation in the blockchain industry. Instead of supporting projects that have a real impact, many investors are only looking for quick price spikes, which can eventually lead to market bubbles and financial collapse.

Negative Impacts of a Short-Term Mindset

Crypto has long been associated with instant success stories, where investors hope to get rich overnight. However, this approach has many negative consequences, including:

1. Increases the Risk of Market Bubbles – Projects that gain too much attention in a short period of time often experience unrealistic price spikes. When such bubbles burst, many investors suffer huge losses.
2. Stifling Blockchain Innovation – The focus on hype projects without real solutions reduces the opportunity for blockchain projects that have long-term potential to thrive.
3. Lowering Industry Credibility – The more investors are fooled by pump and dump schemes and projects that end up as rug pulls, the harder it is for the crypto industry to gain the trust of the general public and regulators.

CZ reminded that building great success in this industry requires resilience and patience. He highlighted Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) as examples of projects that have survived for a long time because they stayed focused on their core mission and implemented gradual and continuous development.

Also Read: Cardano and Check Point Collaborate for AI-Based Blockchain Security!

Long-term Investments and the Future of Crypto

While many investors are tempted by crypto volatility in search of quick profits, long-term investment strategies offer greater stability. Bitcoin, for example, is often considered digital gold due to its decentralization and network security. Ethereum also continues to innovate through the transition to Ethereum 2.0, which improves scalability and efficiency with its proof-of-stake mechanism.

Cardano, on the other hand, uses an academic research-based approach to develop its protocol incrementally. This approach ensures security and transparency without rushing into making potentially risky big changes.

CZ emphasized that the future success of the crypto industry depends not only on price spikes, but on building a strong and trustworthy ecosystem. By supporting long-term oriented projects, investors can help build a more stable and sustainable future of the crypto industry.

Regulation and Short-term Investment Impact

The short-term mindset in crypto is not only risky for individual investors, but also poses challenges for regulators. A surge in speculative investment is often accompanied by an increase in cases of fraud and market manipulation, prompting governments to take stricter action.

Some of the impacts of short-term speculation include:

• Surge in Fraud and Rug Pull Cases – Many new projects offer high returns to attract investors, only to disappear after funds are raised.
• Tight Regulation of Crypto Markets – Governments in various countries are increasingly tightening rules to reduce market manipulation and protect retail investors.
• Declining Mainstream Adoption – Public trust in crypto could decline if the industry continues to be filled with projects that only pursue short-term gains.

CZ urges the crypto community to prioritize discipline, patience, and ethics in investing. He believes that the future of crypto will be brighter if more investors support projects that have long-term value rather than just chasing instant profits.

Also Read: Cardano and Check Point Collaborate for AI-Based Blockchain Security!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Cryptopolitan. CZ Criticizes Short-Term Greed in Crypto. Accessed March 10, 2025.
• Featured Image: coindesk.com