Changpeng “CZ” Zhao has criticized the short-term crypto investment culture, in which investors are driven by greed to accumulate wealth in short-term projects at the expense of ethical long-term projects.
On his X page, CZ wrote, “Unpopular opinion: In crypto, too much money is spent chasing small, quick gains. Focus on ethical teams that build for the long term. Big money is built slowly with stamina.”
CZ remarks point to the speculative nature of altcoins, which are not sustainable due to their instability and risk of market manipulation
Cryptocurrency has historically been synonymous with making a fortune in a single night, and investors are attracted to it because it promises to make them wealthy quickly.
CZ’s worries reflect a larger problem for the sector—the unpredictability of speculative assets. Excessive hype of projects by short-term traders also enables low-quality projects and mispricing of assets. However, when speculative bubbles burst, that can lead to market crashes, and investors are left holding the bag.
In addition, the search for quick returns stifles actual blockchain innovation since purely concentrating on project hype provides zero solutions. This short-termism results in many promising projects never being able to realize their actual potential, hurting the credibility of the industry.
The crypto landscape continues to evolve at a fast pace, and we have much to learn about the virtues of patience and the need for slow-burn development.
To some, this industry’s tried-and-tested projects include Bitcoin, Ethereum, and Cardano. These projects have withstood the test of time by sticking true to their fundamental missions and ensuring that they only focus on developments that make steady and meaningful progress.
No wonder Bitcoin, the so-called digital gold, remains the first and the leading crypto game in town based on the nature of decentralization and the secured path network. This seems against the rampant market speculation, with institutional investors viewing Bitcoin as an increasingly certain store of value.
Ethereum is also accepting long-term development. It moved on to Ethereum 2.0, which has a proof-of-stake model which increases the blockchain’s scalability and sustainability.
Unlike others, however, Cardano was built on peer-reviewed research, meaning the team is focused on making gradual changes and improvements to the protocol instead of rushing headlong into radical improvements, some of which have the potential to compromise security and transparency.
The future of success in crypto will have much less to do with price pumps and much more to do with building a unique society. Having a dependable society is more secure for investors as it results in a more sustainable long-term market. Investors supporting such initiatives can help construct the industry of the future, one sourced from technology rather than speculation.
CZ’s message is a good reminder that crypto investing isn’t just about getting rich in the short term but creating sustainable returns — by keeping the key pillars of this industry, discipline, patience, and ethics, at the forefront of its daily operations.
Long-term investment strategies have their virtues, but most investors cannot resist the volatility of crypto. The wild swings of digital currencies reveal the craving for quick profits, so speculative trading is one option for cashing in on price or market action.
Almost every action with such advantages as high risk is characterized by tremendous market spin, scams, scrutiny from authorities, and emotional burnout. Most traders lose tremendously, even in a short-term trick.
There are many scams and rug pulls, too, with some new projects providing “give-it-to-you” numbers to new investors and crashing when early investors do lockups. This destroys market confidence and affects mainstream adoption the most.
In addition, states and regulatory authorities are currently facing this contemporary issue of speculative trading and have thus already legislated against such practices to combat market manipulation and protect the interests of retail traders. These incidents are symptomatic of the dangers of pursuing short-term growth at the cost of long-term sustainability.
Today, the arguments over short- and long-term investment strategies lie at the heart of all crypto activity as the market matures. CZ’s perspective is “off the deep end,” and it advocates a beaten-down order of crypto investment.
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