The former CEO of Binance, Changpeng Zhao (CZ), recently revealed his investment allocation in crypto within his wallet, confirming a strong exposure to BNB (98.5%) and a smaller share in Bitcoin (1.3%).
This revelation provides a unique insight into the investment strategies of one of the most influential entrepreneurs in the crypto sector. The analysis of his portfolio offers interesting insights into his market vision and financial choices.
Summary
The composition of Changpeng Zhao’s crypto wallet
Until recently, the specifics of CZ’s crypto holdings were unknown, even though he had already stated that he owned BNB and BTC. Now, his exposure is clear: almost all of his capital in cryptocurrencies is invested in BNB, the native token of Binance.
In addition to the predominance of BNB and Bitcoin, Zhao also holds small percentages of stablecoins, including EURI (0.17%) and USDT (0.03%). These holdings, although marginal, indicate a minimal exposure to digital currencies pegged to fiat currencies.
The allocation of 98.5% of the portfolio in BNB demonstrates an unwavering confidence in the Binance token.
BNB is a central asset in the exchange ecosystem, used to reduce trading fees, participate in new project launches, and power the Binance Smart Chain. However, this strategy also involves significant risks.
Such a high concentration in a single asset exposes Zhao to the price fluctuations of BNB, which could be influenced by regulatory factors, market trends, and the performance of Binance as a platform.
The 1.3% of the portfolio in Bitcoin suggests that, while recognizing the role of BTC as a store of value, Zhao has chosen to allocate only a small part of his capital to it.
BTC is often considered the safe haven of the crypto sector, with a market capitalization higher than any other cryptocurrency.
This choice could be interpreted as a minimal diversification strategy, maintaining an exposure to Bitcoin without however diverting most of its resources from BNB.
Stablecoin: a marginal role in CZ’s portfolio
The stablecoin EURI and USDT represent a minimal fraction of Zhao’s allocation. EURI (0.17%) is a stablecoin pegged to the euro, while USDT (0.03%) is the most used stablecoin in the crypto market.
This reduced exposure suggests that Zhao does not consider it necessary to maintain significant liquidity in stablecoins, preferring a more focused approach on volatile assets.
The allocation of CZ’s portfolio reflects a strong belief in the value of BNB and its long-term growth. However, the almost total lack of diversification might seem unusual compared to the more common investment strategies in the crypto sector.
In general, institutional investors and experienced traders tend to distribute capital among multiple assets to reduce overall risk.
The decision of Zhao to concentrate 98.5% of his portfolio in a single token highlights his absolute confidence in Binance and its infrastructure.
This revelation could generate contrasting reactions among investors. On one hand, Zhao’s confidence in BNB could be seen as a positive signal for the token, strengthening its perception in the market.
On the other hand, such a high concentration could raise questions about its exposure to risk and the sustainability of this strategy in the event of unforeseen events.
Regardless of the interpretations, CZ’s transparency in revealing his portfolio offers an interesting perspective on his convictions and his vision of the bull and bear crypto sector.