CZ Fireside Chat Full Transcript: HODL Strategy Challenged, Survival Guide in a Volatile Market

Original Title: "Full Text of CZ Fireside Chat: HODL Strategy Challenged, Survival Rules in Market Volatility"

Original Author: Zen, PANews

In this in-depth conversation within the Hong Kong community, CZ publicly analyzed for the first time the development bottlenecks of BNB Chain, the community controversy surrounding MEME coins, and his expectations for the industry's "healthy ecosystem." He emphasized the need for a balance between "making quick money and slow money," outlining a survival rule that encompasses both risk and opportunity for investors.

On the evening of April 6, CZ unexpectedly appeared at the BNB Chain Super Meetup in Hong Kong, engaging in a candid fireside chat with community representative "Brother Big Aussie." Faced with the current industry situation of MEME coin frenzy, faith division, and market volatility, CZ bluntly stated that "meme coins hype should not be the only thing in the crypto world."

"If You can't hold, You won't be rich" — this classic quote from Binance founder CZ has influenced countless investors. However, in the new cycle, the HODL strategy seems to be facing a challenge. In this in-depth conversation within the Hong Kong community, CZ publicly analyzed for the first time the development bottlenecks of BNB Chain, the community controversy surrounding MEME coins, and his expectations for the industry's "healthy ecosystem." He emphasized the need for a balance between "making quick money and slow money," outlining a survival rule that encompasses both risk and opportunity for investors.

Brother Big Aussie: I have known CZ online for many years, but this is my first time meeting him in person. Meeting an online friend, I am called Brother Big Aussie, and I entered the crypto industry in Australia in 2016. But I feel that the most correct thing I have done in the crypto world is to trade on the Binance platform. I joined at the very beginning, and when it was ICO time, I bought some coins and I still hold them today. So today, I am very honored to have this opportunity to interview CZ on behalf of the community.

I have collected many questions from the community, some of which I have not had time to organize... And because time is short, I have tried to select some slightly provocative questions as much as possible.

Brother Big Aussie: First of all, many people feel that this cycle is very different. Whether it is VC coins slowly declining, MEME coins taking off, or even former U.S. President Trump starting to support cryptocurrency, it seems that there has been a certain degree of faith collapse in the entire cycle. So CZ, how do you view the current market situation?

CZ: Let me first ask, how many of you are into MEME coins through Dogecoin? (Many people raise their hands). Sorry, I might make some of you upset with what I'm about to say next. I think being into Dogecoin is fine, but it shouldn't be the only thing in the crypto space. The current craze around Dogecoin is too strong, and it's not very healthy for the entire industry.

The industry should have people looking for the next hidden gem, enthusiasts for high-growth tokens, as well as long-term builders. However, all the attention is now solely on MEME coins, but even these MEME players are quite disappointed because they can't find tokens that skyrocket tenfold or more every day. The long-term builders are being ignored, and they find it uninteresting. They don't know which token to list on their exchange. So, the entire community is not particularly healthy. I think we still need some groundbreaking methods.

Australian Master: Have you found any groundbreaking methods now?

CZ: I think it's a process. It's not something that can be achieved overnight. For us, in the long run, we still need to support building and engaging in long-term development, which will be more effective. There must be real users, real revenue, actual profits, and users benefiting for the token price to be sustainable... I believe both those seeking quick gains and those seeking gradual gains should exist. But those seeking gradual gains may not be receiving enough support right now. So, what we're doing this afternoon with the MVB, we're also investing, and personally, I communicate with developers.

Australian Master: I consider myself a 'HODLer' as well. In fact, many people... those who truly understand the value and hold onto their coins, in the early days we did hear a lot of your insights, which were very impactful. Because you once said, "If You can't hold, You won't be rich," and my friends and I also took that as a motto. In the past few cycles, we did indeed make significant gains. But in this cycle, we also found ourselves being penalized. Do you think we should continue to 'HODL' at this point?

CZ: I think if you adopt this approach, you should still consider the technical or fundamental aspects. You can't just hoard every token in the market with millions of choices. Most tokens may eventually go to zero... Some do have fundamentals and practical applications, and you can hold them long term.

Australian Master: So, do you think besides Bitcoin, there are some other projects worth trying, that can outperform Bitcoin?

CZ: I think so far there are still quite a few projects that have outperformed Bitcoin. Although everyone holding Ethereum may not be very happy right now, Ethereum has outperformed Bitcoin since the beginning. BNB has also outperformed both Bitcoin and Ethereum from the beginning up to now (here, CZ is referring to the period after the creation of these two tokens outperforming Bitcoin over the same period, it should not be a comparison to the issuance price of Bitcoin). However, Bitcoin's current status is as a reserve asset, and in the long run, holding Bitcoin will still appreciate. However, there are still dozens, or even hundreds, of coins that could potentially outperform Bitcoin.

Australian Brother: That's more than I imagined. I thought maybe only a few?

CZ: Bitcoin has a very high market capitalization, so even with a hundredfold increase, it is still very difficult. Therefore, there are some coins with good fundamentals that have the opportunity to outperform Bitcoin for a period of time. But to seize these opportunities, you still need awareness to be able to discover and persevere.

Australian Brother: What are your expectations for BNB? Recently, some articles suggest that BNB should be valued at over $3000.

CZ: The article was probably written by Hash Global. They are long-term supporters, predicting BNB would reach $40 when it was at $6, $140 when it was $40, and then $1000. His research on BNB may be even more profound than ours. I think the specific value will be determined by the market. Our focus is still on expanding the use cases of BNB, whether on centralized exchanges or DEXs. The more use cases there are, the higher the value of BNB. Whether it's on the Binance Chain or other chains, we are working hard on this. Our main goal is to have more users use BNB. We have made a lot of efforts in various countries offline and online in terms of application scenarios.

We are also investing in DeFi, NFTs, and GameFi, hoping to have more projects on the BNB Chain... Some countries have also approached us, saying they want to use BNB as their nationally recognized digital currency, and so on.

I think this model is viable, and all of this is gradually progressing. We have no secrets; it's just a matter of doing things well and increasing use cases.

Australian Brother: Where do you think BNB will go?

CZ: As for how high the price of the digital asset will rise, that's hard for me to say, and it's not something I can control. I can only say that we continue to build the ecosystem to make more people willing to hold BNB.

Master Aussie: Speaking of BNB Holders, there has been a recent saying — BNB whales are retirement homes, the benefits are too good, especially after each new coin is listed, whales receive a lot of benefits, then dump the price, and finally retail investors buy the dip... Is this situation not ideal?

CZ: I believe the more BNB holders, the better. The more people retire with BNB, the better, as BNB is limited in supply. It's better to have more people holding BNB, and the entire ecosystem will thrive. Of course, some say holders are not doing anything, but I believe holding BNB is a form of action. In fact, it's because of these holders that BNB is also very resistant to price drops, so we should be grateful to these retirees holding BNB.

Master Aussie: Next, let's ask a question about BNB Chain. In the past, we've seen BNB Chain do a lot, striving to create an artificial bull market. Has BNB Chain reached the height you expected?

CZ: To be honest, I think it's a bit below the mark. I think BNB Chain hasn't done enough in the entire ecosystem. Back when I was doing Binance CEO duties... I spent more time there. As for this chain, we didn't want to develop it in a specifically planned way, but rather let the community take it forward. In the past one or two years, I personally spent more time dealing with matters in the United States, so the attention to BNB Chain was not enough. This also resulted in the fact that although meme coins have been popular for the past year, BNB Chain has basically not participated.

BNB Chain has slightly warmed up in the short term, but the extent is still far from enough. I think no matter what the next hot trend is, such neglect will not happen again, and the entire BNB Chain community will definitely seize the opportunity. There are many things to do, and I believe that AI, DeSci, and other fields will develop well in the future.

To be honest, when BNB Chain started, resources were comparatively limited, and the initial attention was not as high as Ethereum's. In the past year or so, I myself have been busy dealing with some compliance or other matters in the United States. However, the current development of BNB Chain is still promising, but the full potential has not been fully realized. Moving forward, we will further invest in infrastructure, DApps, and DeFi. This ecosystem cannot be built overnight and requires continuous effort. We also hope that more developers will be willing to join BNB Chain, and I believe there will be more opportunities in the future. When I was meeting with the 16 projects in the MVB today, there were all sorts of ideas that could be implemented.

Oz Master: Some time ago, you did a lot in the meme field and also studied it. Moving back to meme coins, like the recent PVP. Many people think it's a short-term craze, while others think it's a community trend. What's your take?

CZ: I can tell everyone that my study in the meme field has been somewhat unsuccessful and has caused many problems for the community. Because of my own lack of understanding, when everyone said, "You should post a dog photo," I thought about whether posting a dog photo could attract some traffic, generate some buzz, and be fun. But later I discovered a few mistakes, including feedback from the community that once I post a few photos, everyone knows that there will certainly be hundreds or thousands of meme coins being launched simultaneously, leading to a very serious PVP (purchase of these coins against each other).

After causing the PVP, the community wanted me to pick one (meme coin), but this was quite difficult. I felt that it shouldn't be me picking, but rather the community should decide. I believe meme coins have their community enthusiasm, but they come and go quickly. The sustainability will depend on how the community evolves later on. In principle, we (Binance) will support something with high community enthusiasm, but we will also consider its legality, compliance, and value.

As for whether meme coins will be as hot as they used to be in the future, I'm not so sure. Many people talk about how Solana has many meme coins with a market cap of over 1 billion USD, but on the BNB Chain, we haven't seen that yet. However, at this stage, can Solana still produce another "1 billion market cap"? I don't know; I think it's quite difficult. So, we will continue to support the community. If the community's enthusiasm is there, we will support it, and if the community shifts to something else, we will also shift.

My approach is to always strive to be a good builder, a true long-term builder. I will also interact with the community; I will also interact with fun projects. As for how far this wave of meme coins will go, I really can't see clearly. I'm personally not much of a trader; I don't buy meme coins, and I haven't bought any NFTs. I strongly support this industry; I want to build its infrastructure, and I have great confidence in this foundation, but I am not the kind of person who buys, sells, or speculates.

Oz Master: I see you are often on Twitter, looking at the advice or feedback people give you. Will you take everyone's advice?

CZ: I currently have more time, so I spend more time on Twitter. Of course, it depends on the situation, like today when I have to attend a conference, my interaction time (on Twitter) will be less. Both positive and negative feedback are normal. I personally don't mind too much but look to see if it's constructive. If it's abuse or misinformation, we may clarify to some extent. I prefer to hear the community's actual thoughts, whether it's praise or criticism; it all helps improve. We will take them in, and some of the suggestions we see are quite (constructive). I do read a lot on Twitter, but I'm not very active in WeChat groups.

Oz Master: When you see negative comments on Twitter, do you feel upset?

CZ: Actually, I don't. I have thick skin. When I see criticism, I believe I shouldn't take it too personally. At the same time, I need to calmly understand and learn why others are criticizing, and grasp the essence of their criticism. So, we don't need to take ourselves too seriously. Whether others insult or praise you, don't pay too much attention to it.

Oz Master: A few final questions: Is now a good time for newcomers to enter the market? How can they mitigate risks?

CZ: I think it's never too late to enter the market, but it depends on how you enter. The most important thing is to have a basic understanding of the project and not fantasize about getting rich overnight. For newcomers, it's better to focus on fundamentals. Things that increase tenfold or a hundredfold in one night also lose value quickly. Newcomers should also not put too much money in at the beginning. Start with a small amount of investment, which will make the outcome easier to accept. Consider investing in batches, use DCA (Dollar-Cost Averaging) method, choose some mainstream coins, and avoid going all-in. Also, keep a balanced mindset. Once you enter the market, be prepared for its fluctuations and don't be affected by short-term ups and downs. The industry is still in its early stages and needs time to develop. If you believe in its long-term value, you can hold on. In the long run, there is no problem with the industry's future development, but in the short term, the volatility is very strong, so everyone must pay attention to the risks.

Oz Master: What book are you reading now?

CZ: I'm reading a book about Nvidia, titled "The Nvidia Way." I think this book is well-written, and it shows how others have built their businesses.

Oz Master: OK, our time is almost up today. Do you have anything else you want to say to the community?

CZ: I just want to tell everyone to pay attention to fundamentals and long-term development. Short-term speculation is fine, but evaluate the risks yourself. The cryptocurrency industry is highly volatile, especially DeFi, Meme coins, and such, 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 to provide more support and services to the community.

Oz Master: Alright, thank you, CZ. That's about it for today. Thank you very much for accepting the interview.

Original Article Link