- CZ dismissed an asset tokenization pitch, stressing execution over theoretical models and prioritizing product fundamentals.
- He criticized AI projects for launching tokens before building products, urging developers to focus on market fit first.
- To curb spam, CZ raised ReachMe fees and pledged to donate all earnings, ensuring meaningful inquiries reach him.
Changpeng Zhao (CZ) shared a recent exchange on ReachMe and his investment philosophy after an individual pitched an asset tokenization model. The proposer, who paid 0.6 BNB to send the message, claimed to have developed a groundbreaking approach for tokenizing assets.
The model aimed to transform global finance by enabling real estate, commodities, and stocks to serve as digital assets collateral. It also proposed a fully decentralized stablecoin backed entirely by crypto, eliminating liquidation risks and offering stability under any market conditions.
In response, Zhao dismissed the proposal, stating that he does not invest in models or buy ideas. He emphasized that execution is key and that theoretical concepts hold no value without tangible results.
His response aligned with his broader investment philosophy, which prioritizes product fundamentals, early-stage investments, and mission-driven founders over speculative business models.
CZ Rejects Business Models Without Execution
According to Zhao, his investment philosophy focuses on fundamental aspects rather than theoretical models. He prioritizes user growth, revenue, and strong teams over abstract concepts. His approach favors early stage investments with long term holding strategies.
He also backs mission driven founders who aim for more than financial success. Zhao believes that companies with broader visions create sustainable businesses, while profit driven projects often struggle after initial growth.
AI Token Focus Leads to Debate
Zhao’s stance on execution extends beyond asset tokenization. Recently, he criticized AI developers for prioritizing token launches over building functional products. He advised that tokens should only be introduced once product market fit is achieved.
A user named Cato responded, highlighting the difficulty of securing research and development funding. Cato noted that many investment firms focus solely on profits, forcing developers to rely on token sales. Zhao acknowledged that fundraising via tokens is a legitimate use case but insisted that development must follow funding, not just token sales.
CZ Raises ReachMe Fees to Manage Spam
Following an influx of messages on ReachMe, Zhao increased his fee to reduce spam and irrelevant inquiries. Initially set at 0.04 BNB (approximately $24), the low cost resulted in an overwhelming number of non-serious messages.
To manage this, Zhao raised the price, ensuring only meaningful inquiries reached him. Despite the fee increase, Zhao clarified that he does not intend to profit from the platform. Instead, he will donate all earnings from these messages to charity.
This move shows his commitment to efficiency and meaningful discussions rather than financial gain, ensuring that only high-value exchanges take place on the platform.
