CEO of Binance, the world’s largest cryptocurrency exchange by trade volume Changpeng Zhao He is one of the veteran names of the industry. For this reason, every statement and analysis that CZ will make is of great importance. CZ, In his last statement on his Twitter account, he warned against some projects that have recently attracted the attention of crypto money investors.
Critical Notice from CZ
CZ emphasized that incentives like play-to-earn, staking, airdrops and more are great for attracting new users. Especially the Yuga Labs team, the team behind the BAYC NFT collection and ApeCoin, has used it a lot lately.
Here, CZ gave a very critical warning. If the project does not have an “income” model that will allow it to generate more revenue from these incentives, the decline is inevitable, according to CZ.
Incentives like play-to-earn, staking, airdrops, etc are great at attracting new users. But if the project don’t have a “revenue” model that is greater than the “incentives”, the coin price will eventually crash due to over supply.
The key is: build products people use.
— CZ 🔶 Binance (@cz_binance) May 3, 2022
CZ emphasized that if there is no higher income than the incentive model, the price of the coin in question will fall due to oversupply. The key, according to CZ, is to produce products that people will use and generate income from them.
Stating that the income covers everything from spending crypto money in the hands of users to paying developers for virtual products, CZ emphasized “sustainability”.
Stating that selling tokens is not “income”, CZ underlined that this will only be a starting strategy. Although CZ does not give a clear name, the altcoins he highlighted here may be the ones that have airdropped recently.