Changpeng Zhao’s $2.5M Aster Bet Sends Token Soaring 30% in Hours

• Changpeng Zhao revealed a personal $2.5M investment in Aster, triggering a major price surge.

• Aster soared over 30% from $0.91 to $1.26 before stabilizing around $1.04 amid market volatility.

Changpeng Zhao, the co-founder of Binance, caused a major surge in the prices of Aster tokens when he announced that he personally invested in the cryptocurrency. The former exchange chief disclosed that he had bought more than 2 million Aster tokens valued at around $2.5 million with his own money on Binance. His post on the social media site X caused an immediate market reaction by traders and investors who wanted to act on his lead.

Market Response and Trading Activity

Aster’s price surged dramatically from $0.91 to an all-time high of $1.26 following Zhao’s announcement, amounting to a price increase of more than 30% within hours of the announcement. The token held onto some of its momentum and was changing hands at $1.04 currently, remaining fairly steady amidst declining prices in light of the broader markets volatility. 

Trading volumes surged enormously, jumping from $224 million to more than $2 billion in just 24 hours, as eager investors rushed in to be a part of the action. The project market cap also increased in kind, from $1.8 billion to more than $2.5 billion in the same timeframe as demand increased.   

Zhao advised that the investment is longer-term in nature, citing that he buys and holds and doesn’t trade digital assets for short-term profit. Zhao did express regret that he did not get the opportunity to buy more Aster tokens at a lower price before he made the announcement, which spurred the move to new highs. The crypto veteran also reiterated that this was only the second token that he had purchased outside of BNB in eight years, which illustrates the importance of his investment.

Nevertheless, not every market participant is optimistic about Aster despite Zhao’s notable support. Two large whales have fully opened short positions of around $72 million total, betting that the price drops from here. Their liquidation prices are close to $2, indicating they expect significant downside pressure, despite the recent rally caused by retail speculation.  

Zhao’s family office, YZi Labs, had previously made an investment in Astherus, before it merged with APX Finance, to make the Aster protocol. This connection creates questions about whether he could be involved in any way other than this personal investment he announced via social outlets.

Highlighted Crypto News Today: 

Internet Computer (ICP) Breaks Out with a 10% Push: Fuel for a Bigger Run or Just a Quick Fade?