🐸 #11: "I'm not against memecoins"- Binance Founder CZ, Right Before $19 Billion Is Wiped Out

Sup fellow degens, 

I was scrolling through X reading about the state of memecoins and crypto from all sorts of accounts (dumpster diving, basically but whatever) and ended up living through the phrase: “I was looking for silver but found gold”.

@counterpartytv organised an interview with the founder of Binance, the world’s largest cryptocurrency exchange, Changpeng Zhao (CZ). I knew immediately that I had to watch that.

Why not get all the info that I (and you) need from the OG that’s been in the crypto trenches and lived through everything? Even a prison sentence.

And while watching the interview, I was thinking about all the people blaming CZ for the recent flash crash, which saw altcoins on major exchanges like Binance plummet 60-90% (with some briefly being wiped out to near-zero prices) and triggered a record $19 billion in liquidations across over 1.6 million traders.

I want to share his perspective on memecoins and what I think is behind the recent crash.

CZ shifting views on memecoins

CZ took a moment to get an important message across about his previous tweets about memecoins that made people think he hates them.

“I’m not anti-memecoins. I’m just not into them…I don’t buy art, I don’t buy paintings, I don’t buy music. The same way, I don’t buy NFTs and I don’t understand memes so memecoins are not for me personally…however…”

…as CZ clarifies further, him not being into memecoins doesn’t mean that he hates them. On the contrary, he is a huge nerd for technology and he sees just how huge the market is and he will support any ecosystem that is developing, including memecoins.

And he will invest in anything regarding blockchain and coins if he sees it as something that will benefit the industry. Do we trust him? No, but let’s say he means it.

Also, it is really too bad that he is not that much into memes because I have seen quite a few since he’s been accused for crashing the coins market recently.

The crash and what I think happened here

In my opinion, this crash was one of those classic crypto moments where everything exploded all at once. Claiming one person stands behind everything is degenerate, and not in a good way.

This house of cards fell apart because the market was stacked with insane leverage and running on fumes. Prices were stretched thin after weeks of euphoria and showering in money, so when the negative news hit, like geez idk, like Trump announcing 100% tariffs on all Chinese imports?? This is what happened:

It triggered a chain reaction of liquidations upon liquidations that fed on itself. Within minutes, billions in leveraged positions vanished, order books dried up, and even big exchanges started freezing or lagging, leaving traders helpless while prices free-fell.

What was odd is how exaggerated the moves were: altcoins dropped 20–30% or more, some even flashing to zero for seconds, while Bitcoin took a sharp but relatively contained hit.

Hmmm.

The quick rebound afterward showed this was a leverage flush, not a collapse in conviction.

I think, markets needed a reset. Too much greed and greedy people. Too little liquidity, and that’s exactly what happened. These kinds of wipeouts, while brutal, are almost cleansing for crypto; they shake out excess garbage and give stronger players room to rebuild positions once the dust settles.

The only thing worth questioning is CZ gaining $10 billion from this crash.

But this is another question…that I will leave you to explore by yourselves.

TL;DR: Does CZ hate memecoins and orchestrated the recent crash? I think the answer is a bit simpler: the flash it was a classic overleveraged market implosion.

Stay degen,

Dima