CZ warned traders that buying meme coins inspired by his jokes will likely end in losses, not profits or long-term value.
Former Binance CEO Changpeng “CZ” Zhao has issued a blunt warning to cryptocurrency traders, stating that buying meme coins inspired by his casual social media posts will almost certainly lead to financial loss.
His comments, made in a post to
The risks of turning jokes into investments
In the post, CZ clarified that are random, often ‘dumb, not so funny jokes’ are not conceived as meme coin concepts. “I just tweet like I do… and (usually) don’t think about memes,” he wrote. The warning follows a pattern of developers immediately launching tokens tied to offhand comments from prominent personalities, creating risky assets with little substance.
It caused a wave of backlash on Crypto Twitter, with some users mocking the behavior of traders rushing with joke-based tokens, while others questioned Binance’s own role in meme coin culture. One response referenced previous mentions and asked if Binance had done that before mentioned a meme coin tied to Zhao’s dog.
Several commentators took a broader view. For example Onramp Money warned that turning jokes into ‘financial advice’ through direct token launches almost always leads to losses and urged traders to do their own research. Another user said that some networks are active pushed meme projects to increase transaction activity, even if it meant retailers would likely get hurt.
The discussion also sparked a debate about the quality and cultural basis of meme projects. Some community members argue that the core problem is a lack of support for organic, community-driven meme coins with real stories. User 0xMo.eth suggested that BNB Chain leadership must “support real, organic meme coins that build real communities, not just chase short-term trends.”
This criticism is not new. Back on January 8, BNB Chain supporter Hinata expressed a desire for Binance’s leadership to develop a deeper understanding of meme culture, noting that many publicly traded meme coins “lack a real story, character or story”, causing them to quickly lose value after initial interest.
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A pattern of hype, losses and trust issues
Zhao’s post came at a time when meme coins are gaining attention again. As CryptoPotato reported last week, retail interest returned alongside ETF headlines and short-term market news, with assets like Dogecoin (DOGE) benefiting from structured products tied to its price. Whale activity has also increased, especially around FLOKI, PEPE and Shiba Inu (SHIB), where large transactions and social chatter have driven prices up rapidly.
Although enthusiasm is back, recent incidents underline the risks associated with this asset class. In early January, a meme coin with low liquidity on Binance experienced extreme volatility linked to suspicious trading behavior, allowing an experienced trader to make profits while others were whipped.
Additionally, in December 2025, hackers used a compromised social account of Binance co-CEO Yi He to promote a meme coin, resulting in a pump-and-dump that netted scammers approximately $55,000.
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