‘Don’t buy the meme,’ warns CZ, as bizarre golden statue memecoin crashes 86%

Zoltan Vardai 2 minutes ago ‘Don’t buy the meme,’ warns CZ, as bizarre golden statue memecoin crashes 86% Binance founder Changpeng Zhao warned investors not to buy a new CZ-themed memecoin after its price crashed 86% within hours of launch. Listen 0:00 17 News COINTELEGRAPH IN YOUR SOCIAL FEED Binance founder Changpeng “CZ” Zhao warned crypto investors not to buy a new memecoin launched to capitalize on his popularity, cautioning against the financial risks of trading celebrity-linked tokens with no real blockchain utility. The memecoin emerged shortly after a fan page built a golden statue of Zhao, sharing pictures and offering to send it to the founder of the world’s largest crypto exchange. Zhao warned users in a Wednesday X post not to buy the memecoin associated with the statue, as the launch of the token signals that the creators were looking to “make a quick buck off an interaction” with the founder. “While I want to appreciate the gesture, the fact that there is a meme coin associated with this means the creator probably just wanted to make a quick buck off an interaction from me,” said Zhao. “This is something I don't appreciate. Don’t buy the meme.” Source: Changpeng Zhao Related: Saylor’s Strategy tipped for S&P 500 inclusion after Q3 earnings: 10X Research Zhao-themed “golden statue” memecoin crashes 86% within hours The launch of the latest Zhao-themed memecoin didn’t prove lucrative for its holders. The CZ STATUE (CZ STATUE) memecoin’s price fell 86% within hours after it peaked at a $5.10 million market capitalization at around 10:00 am UTC on Wednesday, according to crypto intelligence platform Nansen . CZSTATUE/WBNB, all-time chart. Source: Nansen Related: Crypto treasuries siphon $800B from altcoins, and it might be ‘forever’ Adding to the concerns surrounding the memecoin, over 15% of the token supply was being held by a newly created cryptocurrency wallet, which signals potential insider activity and marks a “red flag” for its tokenomics, according to Nansen. CZSTATUE token distribution score. Source: Nansen Despite their intrinsic lack of utility, BNB memecoins created new millionaires among crypto traders before the record $19 billion liquidation event halted the speculative appetite fueling these tokens. Since memecoins rely solely on social momentum to rally, making a positive return is often a question of luck. At the beginning of October, a lucky crypto trader turned an initial investment of $3,000 into $2 million , generating an impressive 650-fold return after a previous X post from Zhao sent a BNB-native memecoin’s value soaring, Cointelegraph reported. Magazine: Crypto traders ‘fool themselves’ with price predictions — Peter Brandt # Blockchain # Cryptocurrencies # Altcoin # Business # Technology # Investments # Adoption # Changpeng Zhao # Cryptocurrency Exchange # Tokens # Altrader # Binance # Binance Coin # Trading101 # DeFi # Trading # Web3 # Cryptocurrency Investment # Memecoin # Web3 Decentralization Initiatives # Nansen # BNB Add reaction