CZ Binance Reflects on 2017 Post: Startup That Aimed to Raise $100M Now Worth Less Than $1M

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In 2017, the cryptocurrency world was in the midst of an ICO (Initial Coin Offering) boom. Blockchain startups were launching new tokens to raise millions—sometimes hundreds of millions—of dollars with minimal product development. It was a period of explosive innovation, but also one riddled with hype, speculation, and unsustainable business models. During this time, Changpeng Zhao (CZ), the founder of Binance, published a thought-provoking article on the content platform Steemit titled “I Don’t Like Big ICOs.” Six years later, CZ revisited that post, reflecting on its enduring relevance in today’s more mature crypto landscape.

The Pitfalls of Raising Too Much Too Soon

CZ’s original 2017 article challenged a prevailing trend: startups aiming to raise massive amounts of capital through large-scale ICOs before even launching a functional product. While such fundraising could bring instant visibility and financial runway, CZ questioned whether it was truly beneficial in the long run.

👉 Discover how smart funding strategies can shape the future of blockchain projects.

He argued that raising tens or even hundreds of millions of dollars at an early stage might actually harm a startup’s long-term prospects. Why? Because sudden access to vast sums can dilute focus, reduce urgency, and lead teams to prioritize marketing over product development. When a project hits its peak valuation during fundraising, there’s often nowhere to go but down—especially if real-world utility fails to materialize.

"Someone sent this to me, an article I wrote 6 years ago. The project mentioned currently has a market cap of less than $1M. It's a good group of guys, but probably distracted by too much money. Start small and grow big, not the other way around."

— CZ 🔶 BNB (@cz_binance) July 23, 2023

This quote encapsulates CZ’s core philosophy: sustainable growth trumps short-term hype. He wasn’t opposed to fundraising itself—he simply believed in raising only what a team needs, when they need it, allowing market validation and user feedback to guide expansion.

A Cautionary Tale: From $100M Ambition to Sub-$1M Reality

One specific example CZ referenced was a startup that aimed to raise $100 million during the ICO frenzy. At the time, such ambitions weren’t uncommon—investors were eager, capital flowed freely, and whitepapers promising revolutionary tech often sufficed to secure funding. But without execution discipline and lean operations, many of these projects fizzled out.

Today, that once-high-flying project has a market cap of less than $1 million, a stark reminder of how quickly fortunes can reverse in the volatile world of digital assets. While CZ acknowledged the team’s talent and good intentions, he suggested that excessive early funding may have contributed to their downfall—by creating false confidence, bloating operations, or diverting attention from core innovation.

This trajectory underscores a broader pattern seen across Web3: projects that grow organically, respond to user needs, and maintain financial discipline tend to outlast those chasing instant scale.

Why Organic Growth Wins in Crypto

The crypto industry has evolved significantly since 2017. After the ICO bubble burst and regulatory scrutiny increased, investors and users began demanding more accountability. Today’s successful blockchain projects often follow a different playbook—one aligned with CZ’s original advice.

1. Lean Development Drives Innovation

Startups that begin small are forced to focus on solving real problems with minimal resources. This constraint fosters creativity and efficiency, leading to stronger product-market fit.

2. Community Trust Is Built Over Time

Raising modest funds from committed early supporters helps build a loyal community. In contrast, massive public sales can attract speculative investors who exit at the first sign of volatility.

3. Sustainable Tokenomics Matter

Projects that distribute tokens gradually—through staking rewards, ecosystem incentives, or fair launches—avoid inflationary pressure and dumping by early backers.

4. Market Validation Before Scaling

By launching MVPs (Minimum Viable Products) and iterating based on data, teams reduce risk and increase their chances of long-term survival.

👉 Learn how modern blockchain ventures are redefining sustainable growth in Web3.

Lessons for Founders in 2025 and Beyond

For entrepreneurs entering the crypto space today, CZ’s message remains timely:

As the market matures, the emphasis is shifting from hype-driven launches to sustainable ecosystems powered by real adoption. Whether it's DeFi protocols, NFT platforms, or Layer 1 blockchains, longevity depends on resilience, transparency, and incremental progress.

Frequently Asked Questions (FAQ)

Q: What is an ICO?
A: An Initial Coin Offering (ICO) is a fundraising method used by blockchain startups to raise capital by selling newly issued cryptocurrency tokens to investors. It's similar to an IPO in traditional finance but operates in the decentralized digital asset space.

Q: Why did many 2017 ICOs fail?
A: Many ICOs failed due to lack of product-market fit, poor token design, excessive fundraising leading to mismanagement, and insufficient regulatory compliance. Without clear roadmaps or working products, investor trust eroded over time.

Q: Is raising large amounts of capital always bad for crypto startups?
A: Not necessarily. However, timing and purpose matter. Raising too much too early can create misaligned incentives and operational bloat. It's often better to raise smaller amounts iteratively as milestones are achieved.

Q: How does CZ’s philosophy apply to modern crypto fundraising methods like IDOs or IEOs?
A: The principle remains the same—focus on value creation over capital size. Whether through Initial DEX Offerings (IDOs) or Exchange-led IEOs, projects should aim for fair distribution and organic community growth rather than chasing maximum valuation.

Q: Can a project recover after losing most of its market cap?
A: Yes, though it's challenging. Recovery typically requires rebuilding trust through transparent communication, delivering tangible product updates, and engaging actively with the community.

Q: What are signs of a healthy crypto project today?
A: Key indicators include active development (frequent code commits), growing user base, low token concentration among whales, clear use cases, and sustainable revenue models or token utility.

👉 Explore how emerging crypto projects are applying these principles for long-term success.

Final Thoughts: Start Small, Think Long-Term

Changpeng Zhao’s reflection on his 2017 post isn’t just nostalgia—it’s a timely warning for the next generation of innovators. The rise and fall of overfunded crypto ventures serves as a powerful case study in the dangers of premature scaling.

As the industry moves toward greater maturity, the winners will likely be those who embrace patience, discipline, and user-centric development. In a world obsessed with quick wins and viral trends, sometimes the most revolutionary idea is simply to grow at the right pace.

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