Will Binance CEO Changpeng “CZ” Zhao be the next Elon Musk for meme coins?

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• The meme coin hype appears to have triggered this bullish chain of occasions.
• After a quick pause, Hong Kong’s new crypto regulation appears to have restarted this knock-on impact.
• Including gasoline to this hearth was Binance CEO CZ, who tweeted that the crypto protection by Chinese language state media might set off a bull run.
• However contemplating the bigger macroeconomic outlook and Bitcoin’s present state, the bull run looks as if a fading picture. 

From the launch of meme cash to Hong Kong’s current regulation, crypto markets, or not less than a selected set of the tokens, have skilled huge demand. Binance CEO Changpeng “CZ” Zhao took half on this mania after his current retweet. 

Additionally learn: I bought $200 meme coins, so you don’t have to, here’s how my shitcoin bag of PEPE, WOJAK and KERMIT is doing

From crypto regulation to bull run: Timeline of current occasions

April 16 – Meme coin PEPE launches and kickstarts meme coin mania in the coming days. Its market capitalization pushed from a couple of million to $567 million on Might 1. As the FOMO and frenzy elevated, the frog-themed meme coin’s market capitalization peaked at $1.8 billion on Might 5. This transfer brought about a bullish response in the bigger crypto markets.

Might 5 – Binance lists Floki Inu (FLOKI) and PEPE (PEPE). CZ feedback in an AMA on the identical day,

I personally by no means actually understood meme cash. There are lots of profitable individuals who do appear to grasp them, together with Elon Musk, and others, so we go by customers. If a coin has lots of customers buying and selling it, wanting it, enjoying with it, and so on., then we’ll more than likely record it. 

Might 22 – Chinese-related altcoins like Conflux (CFX), NEO (NEO), and Alchemy Pay (ACH) began to rally with none purpose. In hindsight, this appeared like a pre-news occasion pump. 

Learn extra: Top 5 Chinese cryptocurrencies to buy after Hong Kong welcomes crypto

Might 23 – Hong Kong’s Securities and Futures Fee (SFC) welcomes crypto by permitting registered exchanges to supply cryptocurrency buying and selling to retail buyers.

Learn extra: Hong Kong leaves the door open to Ethereum killers Cardano, Solana, AVAX, MATIC and LINK

Might 24 – China Central Tv (CCTV) places out a video mentioning the Solana-based meme coin – Samoyedcoin (SAMO) and its NFT.

Quickly thereafter, Binance’s CZ retweets this video from CCTV, which triggered a response from crypto lovers. 

Understanding market cycles and investor sentiment

Gauging buyers’ sentiment is essential to figuring out market developments. If carried out appropriately, it will possibly be used to determine cycle tops and bottoms. In the cryptocurrency house, one important commentary that has held true for the final two cycles is that meme cash or peak retail curiosity are inclined to set off a bull run or mark its finish. 

Listed below are a couple of examples:

1. December 18, 2017 – CME opens Bitcoin futures buying and selling. This occasion marked the prime of the 2015-2017 cycle. 
2. September 23, 2019 – Bakkt goes stay after two delays and 13 months of questions. The hype causes Bitcoin value to tank 24% in the next three days and 62% in the next six months. 
3. Might 8, 2021 – Bitcoin value crashes roughly 50% after Elon Musk hosts the Saturday Evening Dwell (SNL) present.

On the opposite, meme coin rallies additionally are inclined to mark the begin of a bull run. Shiba Inu value rallied 330% between October 4 and seven, whereas Bitcoin value rose 15% throughout the identical interval. This explosive transfer in the SHIB meme coin sparked an curiosity in customers that sparked a bull run for the bigger ecosystem. 

Learn extra: Should you buy PEPE, DOGE, SHIB and other meme coins before April 20? Will Elon Musk come through?

Will CZ be the next Elon Musk for meme cash?

Tesla CEO Elon Musk was a key influencer in the 2021 bull run with an avid curiosity in meme cash. Musk named himself the Dogefather, and his tweets brought about huge spikes in volatility and moved the markets. 

However these days, Musk’s sway on the markets has declined drastically. 

From the appears to be like of it, Binance CEO CZ might be taking on the helm after the current developments; retweet of CCTV’s footage mentioning SAMO meme coin and the itemizing of Floki Inu (FLOK) and PEPE (PEPE). 

Not like Musk, nevertheless, CZ is much less reckless and extra of a pacesetter in the digital asset house. After FTX’s collapse, Binance CEO took it upon himself to symbolize the crypto group and launched proof-of-reserve, which ultimately turned an trade customary. 

So to reply the query posed in the title, CZ might be the next Elon Musk for meme cash if he wished to. However it’s unlikely the CEO will be randomly tweeting footage of Dogecoin, Shiba Inu or some other associated meme cash.