Key Takeaways
- The native token of the decentralized exchange Aster (ASTER) spiked over 30% after Binance co-founder Changpeng “CZ” Zhao disclosed a personal stake of over $2.5 million.
- The public announcement led to a massive surge in trading volume, which rose from $224 million to over $2 billion in 24 hours.
- The “CZ Effect” is driving significant market speculation, though two major traders have already taken large short positions betting against the rally’s sustainability.
The ‘CZ Effect’: Influencer Endorsement Rockets Aster Token Price
The native token of the decentralized exchange protocol Aster (ASTER) experienced a dramatic surge in value, jumping over 30% on Sunday, immediately following a public disclosure by Changpeng “CZ” Zhao, the influential co-founder of Binance. CZ shared a screenshot of his wallet holdings in an X post, confirming a personal purchase of over $2.5 million in Aster tokens.
He clarified his intent by stating, “I am not a trader. I buy and hold,” suggesting a long-term commitment rather than speculative trading. This public, personal investment by one of the crypto industry’s most recognized figures instantly propelled ASTER’s price from approximately $0.91 to a peak of $1.26.
The effect of CZ’s endorsement, often dubbed the “CZ Effect,” was immediate and massive. Data from analytics platform DefiLlama showed that Aster’s 24-hour trading volume exploded, rising from $224 million to a staggering over $2 billion. The token’s market capitalization also grew in lockstep, swelling from $1.8 billion to surpass $2.5 billion.
The reaction mirrors similar events in the crypto space, such as the recent price bump for Zcash following an endorsement from crypto entrepreneur Arthur Hayes. One prominent trader noted on X that this was the first time CZ had publicly announced buying a token outside of BNB, urging followers, “Don’t overthink it,” and simply follow the market signal from crypto’s most influential figure.
High-Stakes Trading: Whales Bet Against the Rally
Despite the powerful bullish momentum driven by CZ’s disclosure, the rally has immediately attracted strong bearish sentiment from large-scale investors.
The market is now divided, with at least two major traders, commonly referred to as “whales,” taking significant short positions on the ASTER token. These whales are betting that the price jump, fueled by retail hype and influencer endorsement, will not be sustained and that the price will inevitably fall.
One trader built up an Aster short position amounting to 42.97 million tokens, valued at over $52.8 million, with a liquidation price of $2. The second short position was also substantial, totaling 15.3 million Aster, worth approximately $19.1 million. The existence of these massive short positions indicates a high-stakes, volatile battle is underway between those following the “CZ Effect” and those who view the sudden pump as a short-lived opportunity for arbitrage.
The Known Connections to CZ
The relationship between CZ and the Aster protocol is not new, adding weight to the purchase. CZ’s family office, YZi Labs (formerly Binance Labs), invested in Aster’s predecessor project, Astherus, last year. Aster itself emerged from a merger between Astherus and the decentralized perpetuals protocol APX Finance in late 2024.
While a BNB Chain representative previously confirmed that Aster receives support from both BNB Chain and YZi Labs, they stopped short of confirming CZ’s direct involvement until this personal investment announcement.
Final Thoughts
CZ’s $2.5 million personal purchase of the Aster token delivered an instant 30% surge and billion-dollar volume, confirming his unparalleled influence in the crypto market. However, the immediate appearance of multi-million dollar short positions by whales signals intense volatility and a deep market disagreement over the sustainability of this price pump, positioning Aster at the center of a major speculative battle.
Frequently Asked Questions
What token is Aster (ASTER) the native currency for?
ASTER is the native token for the decentralized exchange (DEX) protocol of the same name.
How much did Aster’s trading volume increase after CZ’s post?
The 24-hour trading volume for ASTER jumped from $224 million to over $2 billion.
What are “whales” doing in response to the price spike?
Two major whales are betting against the rally by opening multi-million dollar short positions on the ASTER token.
