Key Takeaways
- CZ told his 1o million followers that price pullbacks are essential “foundations” for long-term stability.
- BNB surged to an all-time high of over $1,000, supported by Binance’s ecosystem and new partnerships.
- Despite market resilience, Binance remains under intense regulatory pressure.
Binance founder Changpeng Zhao, commonly known as CZ, has sought to frame volatility as a healthy feature of crypto markets after a week that saw contrasting fortunes for two tokens tied to his name.
While Binance Coin (BNB) surged to a fresh all-time high, the newly launched ASTER token, backed by Zhao’s family office YZi Labs, tumbled more than 30% from its debut peak.
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CZ Shares Reassurance
On Sept. 22, Zhao posted to his 10.1 million followers on X:
“Dips are important for establishing support levels, which are like foundations of a house.”
The timing of Zhao’s remark raised eyebrows as BNB had recently surged to a record high, leaving observers to question whether the comments were meant as a pre-emptive warning.
The comment also resonated with investors in ASTER, which had recently suffered a sharp sell-off after its explosive debut.
Market backdrop
According to CoinGecko data , BNB was trading at $1,024 at the time of reporting, up around 11% from $917 a week earlier.
In the past 24 hours, however, the token slipped 3%, falling from a high of $1,054.
Demand for BNB remains underpinned by Binance’s popular ecosystem.
More recently, the exchange announced a partnership with investment firm Franklin Templeton and stepped up efforts to demonstrate stronger compliance measures.
ASTER’s Dip and Rebound
Zhao’s comments carried extra weight in the context of ASTER, a project tied to his circle.
Launched on Sept. 17 with backing from YZi Labs, ASTER initially surged to nearly $1.94 before crashing to $1.33 on Sept. 22.
It later recovered to around $1.57, but remains down by a third from its launch peak despite trading volumes exceeding $2 billion in a single day.
Analysts said the sell-off was a textbook example of the “dips” Zhao described.
“The sharp retreat was likely fueled by profit-taking after its explosive rally,” CCN analyst Victor Olranrewaju said.
He suggested that $2.50 could be the next target if momentum returns, adding: “If this trend continues, ASTER may avoid a prolonged correction and set its sights on higher highs.”
Binance Under Pressure
Zhao’s remarks also arrive as Binance remains under heavy regulatory scrutiny.
The exchange has faced lawsuits and investigations across multiple jurisdictions and last year agreed to pay multibillion-dollar fines to U.S. authorities.
A group of Democratic senators, led by Elizabeth Warren, have pressed the Department of Justice (DOJ) to confirm whether Binance is meeting its obligations under the record $4.3 billion settlement reached in November 2023.
Their intervention follows reports that prosecutors may be considering easing some of the compliance measures attached to the deal, a move the senators warned would be a serious mistake.
The lawmakers also highlighted reports that Binance has lobbied U.S. officials to drop its compliance monitor and raised concerns about potential political influence.
They pointed in particular to alleged financial links between the Trump family and Binance through an investment in World Liberty Financial.
In a co-signed letter, the senators wrote that this “makes it more important than ever that the public understand the Trump administration’s interactions with, and relationship to, Binance and its employees.”
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