A surge in meme coin speculation on the BNB Smart Chain has prompted Binance founder Changpeng Zhao to caution traders about escalating risks.
His warning, posted in response to a promotional tweet by @AstherusHub, emphasized the dangers of trading perpetual contracts on the chain, stating simply: “High risk, high volatility.”
The caution comes amid a sharp rise in meme coin activity on the BNB Chain, where tokens such as #mubarak and #BANANAS31 are being offered with leverage of up to 25x. The promotional tweet encouraged traders to “ride the waves” of the meme season, positioning Astherus as a central platform for these contracts.
But Zhao’s brief response signaled concern. As trading volume increases, so does exposure to volatility, particularly for new or inexperienced participants. While the influx has boosted liquidity and visibility on the chain, market observers warn that the current momentum is driven by speculation rather than fundamentals.
Leverage and Volatility Raise Systemic Risks
Traders are entering a market cycle characterized by rapid price movements and minimal stability. Introducing perpetual contracts tied to newly issued meme assets creates an environment ripe for liquidations. When amplified by high leverage, small price fluctuations can quickly erase gains and compound losses.
Historical trends offer little comfort. Similar periods of speculative frenzy have ended with sharp corrections, exposing retail participants. The present climate echoes past cycles where hype outpaced intrinsic value, and asset prices collapsed once sentiment shifted.
BNB Chain’s growing momentum is further highlighted by leading positions in both centralized and decentralized exchange activity. Binance exchange recently topped global CEX rankings by downloads, beating out platforms such as OKX, Bitget, Coinbase, and Bybit.
According to figures shared by @crypto_rand, Binance registered 4.83 million downloads in February alone—more than double the count of its closest competitor.
Trust Wallet, the flagship non-custodial option for BNB Chain users, also retained its lead among DEX platforms. According to a post by @Axel_bitblaze69, reposted by CZ, Trust Wallet outpaced competitors like MetaMask and Phantom by 35 percent in downloads this month.
With over 200 million cumulative downloads and 2.5 million new users monthly, the app’s dominance has been bolstered by a zero-fee swap campaign active through March 27. These metrics indicate a broader user shift toward BNB Chain’s infrastructure as retail interest builds.
Despite the profit potential, the tools being used—such as 25x leverage—are designed for advanced traders with a clear understanding of risk management. Zhao’s warning reinforces that sentiment. His message, while brief, highlights the mismatch between aggressive financial instruments and inexperienced market entrants.
