Binance’s CZ has just shared crucial BSC warning

After the Gulf of Meme Muntactivity on BNB chain, Binance founder Changpeng Zhao (CZ) sent a clear warning to the community stating that perpetuals on BSC chain can be a source of high risk and volatility. His comment coincides with an increase in activity around meme coins on the BNB Smart Chain (BSC), where suspicions quickly escalate.

Tokens based on the BNB chain are currently being traded with a maximum of 25x leverage. Previous speculative cycles, in which sharp increases were followed by equally fast corrections, are somewhat similar to the current trend of rising memin coins.

Market participants run a significant risk due to the increased activity, although it gives the BNB chain -liquidity and visibility. Competitive price fluctuations are inevitable in this area because newly issued meme assets are subject to eternal contracts with high leverage. Unprepared traders can experience considerable liquidations and have quickly deleted their profit through this degree of volatility. Users must be careful, as the warning from CZ emphasizes.

The current increase is usually based on speculative hype instead of fundamental value, although the BNB chain will be obtained due to the increase in trade volume and involvement. Assets connected to this trend can experience steep drops as sentiment shifts or liquidity contracts. From a network perspective, the presence of BSC can be improved by the increasing popularity of lifting tree products and meme coins.

However, the credibility and appreciation of BNB itself can be weakened if these trends become untenable or are systemic risk. Although there are opportunities with a high reward associated with the current Meme Coin Frenzy on BSC, there is also a high risk. As proposed by CZ, this area is not for beginners. Traders must balance the risks of abrupt market interferences and volatile price action against the possibility of profit.