USDChangpeng Zhao’s $100K Donation Sparks Unexpected Crypto Relief Wave
Binance Founder Turns Attention to Scam Victims
Binance founder Changpeng Zhao (CZ) pledged 150 BNB, roughly $100,000, on February 13, 2024, to aid victims of the LIBRA meme coin collapse, after a college student named EnHeng initiated a fundraising effort. The donation address CZ publicly shared quickly gained traction, receiving more contributions than his initial pledge. EnHeng personally added $50,000 to the relief fund in response to the devastating losses suffered by LIBRA investors.
LIBRA, a token publicly endorsed by Argentine President Javier Milei, skyrocketed before crashing by 91%, erasing $4 billion in value and wiping out 40,000 investors. Zhao, while addressing the situation, noted, “When you try to make quick money, you often lose. When you give money away, you get more back.”
He made it clear that none of the funds would be kept for personal use, promising to direct excess donations toward those affected by other meme coins like TST and Broccoli. Zhao also explicitly warned his followers not to mistake his donations as support for these projects.
Milei’s endorsement of LIBRA on February 9, 2024, positioned it as a potential funding tool for small Argentine businesses under the “Viva La Libertad” initiative. This backing fueled an immediate surge in LIBRA’s value, pushing its market cap past $4 billion within hours.
However, the token’s sudden collapse left thousands of investors with severe losses, some losing their life savings. In the aftermath, Milei deleted his promotional post and distanced himself from the scandal, claiming he had been deceived. Fraud charges were later filed against Milei and the LIBRA development team, accusing them of orchestrating a large-scale financial scam.
On-chain analysis revealed that 82% of LIBRA’s supply was controlled by a single entity, sparking allegations of market manipulation. Crypto infrastructure platforms like Jupiter and Meteora, which supported LIBRA, came under investigation, with Meteora’s co-founder Ben Chow resigning amid insider trading allegations.
CZ Foresees Crypto Wallets Replacing Exchanges for Everyday Use
Despite stepping down as Binance CEO, Zhao remains a prominent force in the crypto industry, now focusing on investments through YZI Labs and contributions to Giggle Academy. In a discussion with Trust Wallet CEO Eowyn Chen, Zhao stated that crypto exchanges should be reserved for large-scale traders, while everyday users should rely on wallets instead.
“I don’t think there should be any block in the future. Exchanges should only be for professional traders—very large traders with liquidity. Most people should not need to interact with an exchange,” he emphasized. Zhao warned against the common practice of using exchanges as wallets, stressing that assets should be stored in dedicated wallets like Trust Wallet rather than centralized platforms like Binance or Coinbase.
Trust Wallet, which Binance previously acquired, has reached 200 million downloads, covering 77% of Binance’s registered user base. Chen highlighted the significance of this milestone, stating, “With all the hoops that you have to jump over, that’s quite some honor from the user base.” Zhao sees wallets evolving beyond asset storage, becoming essential tools for digital identity, financial services, and even government-related applications. Comparing wallets to browsers for the internet, he stressed their growing role in decentralized identity solutions and digital credentials.
Governments worldwide are increasingly exploring blockchain-based identity systems, positioning crypto wallets as a foundational element in this transition. Zhao underscored the potential for wallets to facilitate remittances, wealth management, and DeFi access, shifting crypto adoption away from centralized exchanges. Chen proposed integrating education tools and official services within wallets, allowing users to manage certificates, finances, and digital learning from a single interface.
As the industry adapts to regulatory shifts and decentralization trends, Zhao’s vision points to wallets becoming a central hub for digital finance and identity management, fundamentally altering how users interact with blockchain technology.
This article has been refined and enhanced by ChatGPT.
