CZ @cz_binance Fireside Chat Full Text: HODL Strategy Challenged, Survival Rules Under Market Volatility
"If you can't HODL, you won't be rich."
On the evening of April 6th, CZ @cz_binance unexpectedly appeared at the @BNBCHAIN Super Meetup in Hong Kong, engaging in a candid fireside chat with community representative "Aussie Lion" @BroLeonAus 👇
@BroLeonAus: First, I think many people feel that this cycle is very different. Whether it's the gradual decline of VC coins, the rise of MEME coins, or even Trump in the US starting to support cryptocurrency, the entire cycle seems to have experienced a certain degree of faith collapse. So, CZ, how do you view the current market situation?
CZ: Let me ask first, how many people are chasing "shitcoins" and playing with MEME coins? (Many people raise their hands). Sorry, you might get angry at what I'm about to say, but I think chasing "shitcoins" is okay, but it shouldn't be the only thing in the crypto space. This round of chasing "shitcoins" has too much momentum, which is not healthy for the entire industry.
The industry should have people looking for the "wealth code," keen on tokens with relatively large gains, and there should also be long-term builders. But now all the attention is focused on MEME coins, but these MEME players are also disappointed because they can't find tokens that increase tenfold or a hundredfold every day, and no one pays attention to what long-term builders are doing, and they also feel it's not fun. Exchanges don't know which coins to list either. So the entire community is not very healthy. I think we still need some ways to break the situation.
@BroLeonAus: Have you found a way to break the situation now?
CZ: I think it's a process. It's not something that can be done overnight. For us, in the long run, we still need to support construction, which will be more effective in the long run. Indeed, there must be real users, real income, and profits, and users can also benefit, so that the coin price can be maintained for a long time... I think there should be people who want to make quick money and people who want to make slow money. But now it may be that people who make slow money don't get enough support. So we are doing MVB this afternoon, we are also investing, and I personally communicate with the builders.
@BroLeonAus: I think I am also a "HODL" believer. In the past few cycles, we have indeed received great benefits. But in this cycle, we also found that we were punished. Do you think we should continue to stick to "HODL" now?
CZ: I think if you want to take this point of view, you still have to look at the technical or fundamental aspects. You can't just hoard tens of millions of tokens on the market. Most tokens may eventually go to zero... Some really have fundamentals and practical applications, and you can hold them for a long time.
@BroLeonAus: So you think that in addition to Bitcoin, there are some other projects that may be worth trying and can outperform Bitcoin?
CZ: I think so far there are still many projects that have outperformed Bitcoin. Although everyone is not very happy holding Ethereum now, Ethereum has outperformed Bitcoin from the beginning to now. BNB has also outperformed Bitcoin and Ethereum from the beginning to now (here CZ refers to the period after the creation of these two tokens that outperformed Bitcoin in the same period, and should not be compared with the issue price of Bitcoin). But Bitcoin's current position is a reserve asset. In the long run, holding Bitcoin will still appreciate in value. However, there are still dozens or even hundreds of coins that may outperform Bitcoin.
@BroLeonAus: That's more than I thought. I thought there might only be a few?
CZ: Bitcoin's market cap is very high, so it is still difficult to have a hundredfold increase. Therefore, some coins with better fundamentals have the opportunity to outperform Bitcoin for a period of time. But if you want to seize these opportunities, you still need the knowledge to discover and persevere.
@BroLeonAus: What are your expectations for BNB?
CZ: The person who wrote this article should be Hash Global. They are a long-term supporter. When BNB was $6, they said it would reach $40, when it was $40, they said it would reach $140, and then said it would reach $1,000. Their research on BNB may be deeper than ours. I think the specific value is determined by the market. The direction of our efforts is still to expand the use cases of BNB. Whether it is on centralized exchanges or DEXs, the more use cases, the higher the value of BNB. We are working hard on this whether it is on the Binance Chain or other chains. Our main goal is to get more users to use BNB. We have made a lot of efforts in application scenarios in various countries, both online and offline.
We are now also investing in DeFi, NFTs, and GameFi, hoping to have more projects on BNB Chain... Some countries have also come to us and said that they want to use BNB as a digital currency recognized by their country, etc.
I think this model is feasible, and these are being promoted slowly. We don't have any secrets, just simply do things well and increase usage scenarios.
@BroLeonAus: How high do you think BNB will go?
CZ: As for how much the number will rise, I can't say, and I can't control it. I can only say that we will continue to build the ecosystem and make more people willing to hold BNB.
@BroLeonAus: Speaking of BNB Holders, there is a recent saying that BNB whales are nursing homes, and the benefits are too good, especially every time a new coin is launched, the whales get a lot of benefits, and then dump the coins, and finally retail investors take over... Is this not very good?
CZ: I think the more BNB Holders, the better, and the more people who use BNB for retirement, the better, because BNB is limited. The more people who hold BNB, the better, and the entire ecosystem will be more prosperous. Of course, some people say that Hodlers don't do anything. I think holding BNB is doing something. In fact, it is precisely because of these Holders that BNB is also very resistant to falling, so we must thank these people who hold BNB for retirement.
@BroLeonAus: Next, a question about BNB Chain. In the past, I saw that BNB Chain did a lot of things and tried to create an artificial bull market. Has the current height of BNB Chain reached your expectations?
CZ: To be honest, I think it is still one level lower. I don't think BNB Chain has done enough in the entire ecosystem. When I was the CEO of Binance before... I spent more time in it. As for the BNB chain, we don't want it to develop according to plan, but let it develop in the community. In the past one or two years, I personally spent more time on related matters in the United States, and did not pay enough attention to BNB Chain. This has also led to the fact that although meme coins have been popular in the past year or so, BNB Chain has basically not participated.
BNB Chain has warmed up slightly in the short term, but the degree is far from enough. I think no matter what the next hot spot is, this kind of thing (negligence) will not happen again, and the entire BNB Chain community will definitely seize it. There are still many things to do. I think AI, DeSci and other fields should develop well in the future.
To be honest, BNB Chain had limited resources when it started, and the initial attention was not as high as Ethereum. In the past year or so, I have also been busy dealing with some compliance or other matters in the United States. But BNB Chain is currently developing well, but it has not fully realized its potential. We will further invest in infrastructure, Dapp, and DeFi next. This ecosystem cannot be built overnight and requires continuous cultivation. We also hope that more developers are willing to come to BNB Chain, and I also believe that there will be more opportunities in the future. Today, when I had a meeting with the 16 MVB projects, there were all kinds of ideas that could be done.
@BroLeonAus: You have done a lot in meme recently and are also learning. Speaking of Meme coins again, such as the recent PVP, many people think it is a short-term craze, and some people think it is a community trend. What do you think?
CZ: I can tell you that my learning in meme has been somewhat unsuccessful and has caused many problems for the community. Because I don't know enough, everyone said "you post dog photos", so I thought about whether posting dog photos could attract some traffic and create some hot topics, which would be more fun. But later I found a few mistakes, including the community also told me that once I post a few photos at a fixed point, everyone knows that there will definitely be hundreds or thousands of meme coins posted together, causing very serious PVP.
After causing PVP, the community wants me to choose one (memecoin), but this is difficult. I don't think I should choose, but the community should choose. I think Meme coins have their community popularity, but they also come and go quickly. Sustainability depends on how the community develops in the later stage. We (Binance) will in principle support things with high community popularity, but we will also see if it is legal and compliant, and whether it has value.
I'm not so sure whether memecoin will be as popular as before. Many people say that there are many meme coins with a market cap of $1 billion on Solana, but BNB Chain has not yet produced one. But at this stage, can Solana still produce a "$1 billion market cap"? I don't know, I think it's also difficult. So we still have to support the community. If the community's popularity is there, then we will support it. If the community turns to other things, then we will also turn to other things.
My starting point is to always work hard to be a builder and truly be a long-term builder. I will also interact with the community, and I will also interact with fun projects. As for how far this wave of memecoin will go in the future, I really can't see clearly. I personally don't speculate in coins, I don't buy memecoin, and I haven't bought NFTs. I am very supportive of this industry. I want to do its infrastructure, and I am very optimistic about this foundation, but I will not be the person who buys, sells, and speculates.
@BroLeonAus: You often go on Twitter to see some suggestions or comments from everyone. Will you adopt everyone's suggestions?
CZ: Now I have more time, so I spend more time on Twitter. Of course, it also depends on the specific situation. Like today I am attending a meeting, (Twitter) interaction time will be less. It is normal for everyone to have positive and negative comments. I personally don't mind too much, but I will see if it is constructive. If it is abuse or false information, we may clarify it appropriately. I hope to hear the actual thoughts of the community, whether it is praise or criticism, it will help to improve. We will adopt it. Some of the suggestions we see are quite (constructive). I read a lot on Twitter, but less in WeChat groups.
@BroLeonAus: Do you feel uncomfortable when you see negative comments on Twitter?
CZ: Actually, no, I have a thick skin. When I see criticism, I think I can't be too uncomfortable, and I also have to calmly understand and learn why others criticize me, and understand the most essential part of others' criticism. So we don't have to take ourselves too seriously. Whether others scold you or praise you, you don't have to pay too much attention.
@BroLeonAus: If you are a novice, is it a good time to enter the circle now? How to avoid risks?
CZ: I think it's never too late to enter the circle at any time, but it depends on how you enter. The most important thing is to have a basic understanding of the project, and don't fantasize about getting rich overnight. People who have just entered the circle should try to look at the fundamentals as much as possible. Things that increase tenfold or a hundredfold overnight will also lose money very quickly. Don't put too much money into the currency circle when you first enter it. The results of investing a small amount of money at the beginning will be easier to accept. You can consider investing in batches, DCA (fixed investment) method, choose some mainstream currencies, and don't go all in. In addition, you must have a calm mind. Once you enter the circle, you must accept its volatility and not be affected by short-term ups and downs. The industry is still in its early stages and needs time to build. If you are optimistic about the long-term value, you can hold it. In the long run, there is no problem with the future development of the industry, but in the short term, this volatility will be very strong, so everyone must pay attention to the risks.
@BroLeonAus: What book are you reading now?
CZ: I am reading a book about Nvidia, "The Nvidia Way". I think this book is well written and you can see how others start a business.
@BroLeonAus: Do you have anything else you want to say to the community?
CZ: Actually, I just want to tell everyone that you must pay attention to fundamentals and long-term construction. Short-term speculation is possible, but you must assess the risks yourself. The currency circle is a highly volatile industry, especially DeFi and Meme, which are not very stable. I hope everyone can participate in a healthier and more rational way. We will continue to invest in the industry and provide more support and services to the community.
