Binance Founder CZ Responds to FUD Over 'Buy and Hold' Tweet – Here’s His Perspective

In recent days, Binance founder Changpeng “CZ” Zhao has faced mounting backlash on social media following his brief commentary on “buy and hold” strategies. This sparked discussions about market losses, the responsibilities of exchanges, and his impact on cryptocurrency markets.

Key Takeaways

Changpeng Zhao faced criticism after his "buy and hold" comment, which some interpreted as a broad endorsement for all cryptocurrencies.
Zhao clarified that his statement wasn’t meant to apply to every cryptocurrency and warned against universal buy-and-hold strategies.
The commentary surfaced amid concerns about the effects of the October 10 crash on leveraged positions in the crypto market.
Zhao emphasized the importance of conducting personal research before investing and compared the crypto landscape to early internet days.
The criticism of Binance has expanded to governance issues, with industry leaders warning about the potential for short-term incentives to undermine trust.

Binance Founder CZ Responds to FUD Over 'Buy and Hold' Tweet – Here’s His Perspective

The debate began with a tweet from Zhao on January 25. In it, he noted that, from his experience, few trading strategies outperform the simple “buy and hold” approach, while clearly stating that it wasn’t financial advice.

However, this statement quickly gained traction on crypto social media. Many interpreted it as a blanket endorsement for holding any tokens listed on major exchanges, regardless of their quality or market conditions.

CZ Clarifies His Position Amid Criticism Linked to Market Losses

As cryptocurrency prices continued to decline, critics suggested that Zhao’s message overlooked the fact that many tokens fail to recover after entering a bear market.

In response to what he termed “twisted FUD” surrounding his comments, Zhao took to X to clarify that his statement was not intended to suggest that all cryptocurrencies should be held indefinitely.

He pointed out that blindly buying and holding all assets in any sector would likely lead to poor results, as most projects falter, while only a handful produce significant returns.

This clarification came amid aggressive criticisms, with some accusing Zhao and Binance of exerting undue control over the market, leading to liquidations and providing misleading information to users.

Other critics linked their concerns to the October 10 market crash, which resulted in massive losses for leveraged positions in the crypto space.

Can Long-Term Crypto Success Be Predicted? Insights from Changpeng Zhao

Questions about the buy-and-hold strategy also resurfaced regarding token listings.

When a user asked whether exchanges should exclusively list assets suitable for long-term holding, Zhao responded that no one can reliably predict which projects will succeed in the future.

He compared the crypto industry to the early internet days, suggesting that exchanges should allow credible teams to present their projects and leave investment choices to individual users.

Zhao reiterated that just because a token is listed doesn’t mean users are obligated to buy it and emphasized the importance of conducting personal research.

The debate over holding strategies reflects broader tensions in the industry.

Some traders assert that long-term holding, particularly of major assets like Bitcoin and Ether, historically outperforms frequent trading among disciplined investors. Conversely, others argue that long-term downturns in altcoins have negatively impacted many portfolios, making generalized advice increasingly difficult to apply.

Binance Under Scrutiny Following the October 10/11 Market Crash

Binance was closely associated with the crypto market crash that occurred on October 10-11, 2025, as technical failures during extreme volatility hindered users from managing their orders and exacerbated mass liquidations.

Challenges such as system overloads, display errors, asset de-pegging, and ineffective risk controls contributed to losses amounting to $283 million.

In response, Binance acknowledged these issues, compensated affected users, rectified pricing errors, and enhanced its infrastructure and risk management protocols to prevent future occurrences.

Institutional experts have also joined the dialogue, observing that forced deleveraging following the October crash appears largely complete. This shift is prompting a focus on long-term positioning instead of short-term volatility.

Meanwhile, criticism directed at Binance has expanded to include concerns about governance and market structure.

Industry leaders, such as Star Xu, the CEO of OKX, have warned that short-term incentives and aggressive token promotions could erode trust and hinder broader market adoption.

Supporters of Binance contend, however, that much of the criticism stems from broader frustrations with market cycles rather than clear evidence of coordinated misconduct.