Former Binance CEO Changpeng "CZ" Zhao has publicly defended his long-standing advocacy of a buy-and-hold investment strategy following a wave of criticism from traders on social media. The controversy ignited after a January 25 post where CZ stated that few trading strategies outperform buy-and-hold, clarifying it was his personal approach and not financial advice.
This blanket statement drew significant pushback, with critics arguing it ignores the high failure rate of cryptocurrency projects and could mislead retail investors. In response, on January 28, CZ issued clarifications, stating the advice "obviously does not apply to every coin" and accused critics of twisting his words with "fear, uncertainty, and doubt." He emphasized that project selection is crucial, advising investors to conduct thorough research rather than blindly buying every asset listed on an exchange.
The debate widened as old allegations against Zhao resurfaced. A trader known as StrongHedge labeled CZ "crypto’s biggest scammer" in a lengthy X thread, referencing past claims of market manipulation and token listings, alongside Zhao's 2023 U.S. conviction for compliance failures. Crypto podcaster Leonidas joined the criticism, accusing CZ of extracting large sums from the market.
Conversely, supporters like user Zafer Erel defended Zhao, highlighting his role in onboarding millions of users, freezing scam-related funds, and making charitable donations. The clash underscores a persistent tension in crypto between the philosophy of open, permissionless listings and calls for exchanges to implement stricter quality controls to protect investors.
