The $4 billion crash of LIBRA token forced Binance Founder Changpeng Zhao to list signs to watch out for when choosing tokens to bet on
Binance Founder Changpeng ‘CZ’ Zhao has shared his take on the recent pump-and-dump scheme associated with the LIBRA token. Taking to his X handle, he shared 4 key takeaways that key stakeholders in the industry need to watch out for. Notably, this take comes amid a growing shift toward celebrity tokens in the broader market.
Binance Founder on Ideal Token Signs
According to the CZ post, industry personalities with respected online profiles must be careful when endorsing a token. He noted that token economies matter for any kind of asset. The former Binance CEO said a lot of research must be done before a user decides to invest or not.
The President Trump family launched the TRUMP and MELANIA tokens in January. The massive embrace of these tokens pushed TRUMP to the top 15 in the market within days. However, these assets have lost bullish momentum, leaving many investors in losses.
Binance Founder Almost Caught in Memecoin Saga
Meanwhile, Changpeng Zhao almost mixed with a similar memecoin frenzy earlier this week. The trend started when he posted online his dog Brocolli, a Belgian Malinois.
In a short while, many memecoin variants tracking the price of the dog came online. One whale made huge gains after betting on BROCCOLI as the price rallied over 160%.
Some investors even demanded that CZ drop a contract address for a token linked to the dog. However, he refused, avoiding another potential failed celebrity token. From his experience, he noted that the Argentina LIBRA token could have recorded a better outcome if properly planned.
