CZ Buys the Dip: Changpeng Zhao’s $2M Aster Investment Sparks Rebound After Rumor-Fueled Crash

Days after a false rumor surrounding Binance founder Changpeng “CZ” Zhao which have cause a mass liquidation of the ASTER token which resulted in a 16% price freefall, the Binance founder is coming forward with a grand gesture to regain the trust of its users.

To reassure that the ASTER token is not just another scam, CZ threw in over $2 million from his own pocket to show his personal support for the cryptocurrency. The move has reignited investor confidence in Aster (ASTER), which had been reeling from a wave of panic selling triggered by the now-debunked claims.

On Oct. 30, the token crashed from $1.03 to $0.85 in hours, wiping out $7.1 million in leveraged positions before blockchain data from Lookonchain confirmed the supposed sell-off was merely an internal Binance wallet transfer.

CZ swiftly denied the allegations, calling them “false information.” His personal investment over the weekend now doubles as both a vote of confidence and a reputation reset, signaling to the market that Aster remains one of his favored DeFi projects.

Zhao revealed the purchase in a post on X, confirming that he had bought Aster tokens using his own funds on Binance. “I’m a long-term holder, not a trader,” he wrote — a statement that immediately fueled bullish sentiment across the DeFi space.

Within an hour of his announcement, Aster’s price jumped from around $0.91 to above $1.20, according to market data. Trading volume also surged as investors rushed to follow his lead. Aster’s close links to YZi Labs, Zhao’s family office, further reinforced investor belief that the platform enjoys strong institutional backing and continued development support.

The price recovery capped off a dramatic week for the DeFi token, turning what began as a trust crisis into a narrative of resilience and rebound.

Aster’s Data Controversy Turned Growth Catalyst

Aster’s comeback is remarkable not only for its speed but for how it weathered past controversies over transparency. Earlier this year, DefiLlama temporarily removed Aster’s trading data, citing issues verifying the exchange’s reported volumes. Critics accused the project of inflating numbers — but after new monitoring systems were implemented, DefiLlama reinstated Aster’s data, validating its activity on-chain.

That incident, once a reputational setback, has now become a proof point of credibility. According to The Block, Aster has since surpassed rival Hyperliquid, recording more than $70 billion in transactions over a seven-day period — a milestone that cements its position among the top decentralized perpetuals exchanges globally.

Several factors underpin Aster’s growing market dominance. The platform processes billions in daily volume through on-chain settlement, ensuring transparency and verifiability. It has attracted major market makers who bolster liquidity and price stability, and its community governance model allows token holders to directly shape protocol fees and incentives.

Aster’s integrations across leading Layer-2 networks have expanded its reach and reduced transaction costs, while its transparency upgrades — including real-time verification tools — have strengthened investor trust. Together, these advances have positioned Aster as one of DeFi’s most credible and scalable perpetual trading platforms.

Aster’s Redemption Story — and the Message Behind It

CZ’s re-emergence as an active investor marks another turning point for crypto. Following his presidential pardon from Donald Trump on Oct. 23 — after serving a four-month U.S. prison sentence for banking law violations — Zhao’s return has galvanized both institutional and retail sentiment.

His endorsement of Aster has not only driven its recovery but also revived broader confidence across DeFi markets, particularly those tied to decentralized trading infrastructure. Aster’s token climbed to $1.07, while Binance’s BNB rose over 5% to $1,123, reflecting renewed optimism around projects associated with Zhao.

From a panic-driven meltdown to a confidence-fueled rebound, Aster’s trajectory underscores how quickly market sentiment in DeFi can swing — especially when linked to a figure as influential as CZ.

But beyond the market drama lies a deeper signal: China’s tech-backed DeFi ventures are becoming increasingly dominant in the global blockchain ecosystem. The success of Aster — backed by YZi Labs and buoyed by Zhao’s renewed presence — showcases how Asian innovation is now setting the pace for decentralized finance, emphasizing transparency, scale, and on-chain proof over speculation.

For now, Aster’s turnaround stands as both a redemption arc for the project and a reminder of CZ’s enduring market power. In a space where one rumor can erase millions, it seems one tweet from CZ can still rebuild it just as fast.