- CZ criticizes meme coins, urging focus on real-world blockchain applications.
- Memecoin market faces volatility, prompting caution from industry leaders.
Changpeng Zhao, the founder and former CEO of Binance, expressed his concerns over the growing popularity of meme coins, calling the trend “a little weird” in a statement made on Tuesday. Zhao’s comments come at a time when meme coins see explosive gains in 2024. However, the rise of meme coins has also sparked increased volatility, leaving Zhao to emphasize the need for more practical and sustainable applications of blockchain technology.
I am not against memes, but meme coins are getting "a little" weird now.
— CZ 🔶 BNB (@cz_binance) November 26, 2024
Let's build real applications using blockchain.
While CZ acknowledged the fun and novelty behind memecoins, he cautioned that the trend had strayed from its initial appeal and become increasingly speculative. His comments were echoed by other notable figures in the crypto space, who remarked that meme coins had shifted from being “fun” to “desperate,” reflecting concerns about the speculative nature of the sector.
Meanwhile, negative speculations arose as CZ’s comments come in the wake of Binance’s recent move to introduce futures for meme coins like WHY and CHEEMS on the BNB Chain. Despite Binance’s push to offer more trading options, the new futures contracts were met with a sharp decline in the prices of these tokens shortly after launch. This drop has led to further criticism from users who feel that Binance, as a global leader in centralized exchanges. And that it should prioritize listing cryptocurrencies with tangible utility and real-world applications.
Memecoins On Bumpy Ride
The memecoin market has faced additional pressure as Bitcoin (BTC) dropped below $94,000, triggered by external factors such as an increase in tariffs by former US President Donald Trump. DOGE, SHIB, PEPE, and BONK each suffered losses of around 9-10%, contributing to the heightened selling pressure in the broader crypto market. Furthermore, rumors have surfaced suggesting that Tesla CEO Elon Musk may be subtly promoting PEPE.
As meme coins face increasing scrutiny from both investors and industry leaders, CZ’s comments highlight the growing call for greater focus on the long-term potential of blockchain beyond speculative trends.
