• Changpeng Zhao says growth for Dogecoin and Shiba Inu among other meme coins is indicative of crypto’s decentralisation
• He told The Associated Press that consumers need to understand that “everything is volatile”

Changpeng Zhao, CEO of

Binance, has called for clarity in regulatory matters in the crypto sector. He said that the rise of meme coins such as Dogecoin or Shiba Inu is a sign of the power of decentralisation. This is a key component of the huge growth in crypto over recent years.

Zhao observed this while speaking to The Associated Press in an interview on Tuesday.

If people want it, it’s valuable

Asked for his opinion on cryptocurrencies that “started off as a joke”, but have since risen to rank among the most valuable by market capital, the Binance chief replied:

“To be honest, I don’t get Dogecoin. But this shows the power of decentralisation.”

He stated that although his opinion about meme coins may not be significant, digital assets are growing because more people believe they have value. He spoke of DOGE:

“Dogecoin has lasted so many years. It’s gone up and down, up and down, but it’s lasted.”

According to CoinGecko, Dogecoin’s price has increased by more than 8,000% in the past year. However, it has also seen some major dips, including nosedives of over 25% in June and September and nearly 15% in the last seven days.

Zhao believes that the principles of supply-demand are at play here. The entry of coins like Shiba Inu creates a buzz as a lot of people want to either buy or sell them. This gives liquidity to the market, which in turn increases the coins’ value.

“You have to park your value somewhere”

CZ, as he is known in the crypto world, also talked about volatility, telling AP that cryptocurrencies see huge price fluctuations because the crypto market is “relatively smaller.” Zhao says that what consumers need to understand about the markets- crypto or otherwise- “is that everything is volatile.”

“You have to park your value somewhere. It could be a house or stock. It could also be U.S. Dollars. He said that all these things can fluctuate in relation to ,”.

He also has some tips for anyone who wants to invest their money.

“If you have to pay rent in U.S. dollars next month, then you need to hold some U.S. dollars. This money cannot be put at risk by highly volatile assets. But the money that you can set aside for two years, five years, you can move that money into highly volatile assets,”

Zhao said he only holds Bitcoin (bought in 2014) and Binance Coin, the native coin in the Binance ecosystem.