The price of the Aster token experienced a significant surge of over 30% on Sunday after Binance co-founder Changpeng “CZ” Zhao revealed he had personally invested more than $2.5 million in the decentralized exchange protocol's native token. Zhao shared his holdings via an X post, stating he bought "some Aster today, using my own money on Binance" and emphasizing his "buy and hold" strategy.
Key Takeaways
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CZ disclosed a personal investment of over $2.5 million in Aster tokens.
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The Aster token price jumped from $0.91 to a high of $1.26 following the announcement.
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Trading volume for Aster surged dramatically, increasing from $224 million to over $2 billion in 24 hours.
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Despite the rally, some large investors, known as whales, are shorting Aster.
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CZ's family office previously invested in Aster's predecessor.
Market Reaction To CZ's Investment
Following CZ's announcement, the Aster token saw its price climb from $0.91 to a peak of $1.26, according to CoinGecko data. At the time of reporting, the token was trading around $1.22. This price movement was accompanied by a substantial increase in trading volume, which soared from $224 million to over $2 billion in the preceding 24 hours. The market capitalization of Aster also grew, rising from $1.8 billion to over $2.5 billion.
Traders on social media platform X reacted swiftly, with some viewing CZ's personal investment as a strong endorsement. One trader noted that this was the first time CZ had publicly announced buying a token other than BNB, highlighting the potential significance of the move. CZ himself commented on the rapid price increase, humorously stating he had hoped to "buy some more at low prices" and reiterated that he rarely buys tokens outside of Aster and BNB.
Contrasting Views: Whales Short Aster
While the majority of the market reacted positively to CZ's investment, not all participants shared the optimistic outlook. Reports indicate that two significant investors, referred to as whales, have initiated short positions against Aster. One whale has built a substantial short position of 42.97 million tokens, valued at $52.8 million, with a liquidation price of $2. Another trader has increased their short position to 15.3 million Aster tokens, worth $19.1 million, with a liquidation price of $2.11.
CZ's Previous Connection To Aster
This is not the first time CZ has shown interest in Aster. In September, he publicly congratulated the project on X, encouraging the developers to "keep building." Questions about CZ's direct involvement have persisted, but it is known that his family office, YZi Labs (formerly Binance Labs), invested in Aster's predecessor, Astherus, last year. Aster was formed through a merger between Astherus and APX Finance in late 2024. A representative from BNB Chain previously confirmed that Aster received support from BNB Chain and YZi Labs, though details regarding CZ's direct participation remained undisclosed.
Sources
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