Changpeng Zhao (CZ), the former CEO of Binance, recently made a statement on memecoins that went viral on social media. CZ originally stated that he is not opposed to that segment of the cryptocurrency market, however, he is advocating for real-world use case applications.
Since the introduction of the flagship token Dogecoin (DOGE) in 2013, memecoins have become more and more popular. The so-called “Dogecoin killer,” Shiba Inu, was developed seven years later in 2020. It gained popularity fast and rose in value to become the second-largest meme currency. Since then, several noteworthy coins have emerged in this market, giving investors exponential returns.
CZ Calls Memecoins “Weird”
The cryptocurrency behemoth demanded in a tweet on November 26 that actual blockchain applications be supported instead of developing more memecoins. He emphasized that while he has nothing against memecoins, the fact that thousands of them are being made every day, the bulk of which are “pump and dumps,” is making them “a little weird” at the moment.
The pump and dump fraud is extremely specific to the memecoin market, as developers provide false hope to investors who rush into the project and deposit large sums, only for the coin to become worthless in a short period. This has resulted in millions of dollars in losses for unknowing investors. CZ’s statement, albeit being presented in good conscience, sparked outrage from the crypto community.
Community Reaction
More than a million people saw CZ’s article, which sparked a lot of criticism directed at him and Binance, his firm. They were criticized for being hypocritical for listing memecoins before more practical tokens. In particular, a user named Dark Crypto Larp noted that more memecoins than useful coins are now listed on Binance.
“Unfortunately that’s what Binance has been listing nowadays instead of coins with utilities/applications,” he said.“
He went on to say that because Binance is the biggest centralized cryptocurrency exchange globally, it has a significant role to play in reversing this tendency and supporting appropriate crypto applications.
Another user, HeadBoy, provided an exact count, pointing out that in recent months, Binance has listed twelve (12) memecoins while ignoring other superior tokens with practical uses.
Furthermore, he alleged that the platform hardly ever supports real decentralized finance products and that Binance and other centralized exchanges are the “enablers” of the memecoin craze.
During the back and forth, additional community members showed their enthusiasm for memecoins, particularly because they provide one of the quickest methods to profit in the crypto market. Memecoin’s trajectory has been heavily affected by hype from notable personalities in the crypto industry, with Elon Musk and Dogecoin serving as prime examples.
Conclusion
Changpeng Zhao (CZ), the former Binance CEO, sparked debate by criticizing the proliferation of memecoins, calling them “weird” and advocating for blockchain projects with real-world applications.
While acknowledging the popularity of memecoins like Dogecoin and Shiba Inu, CZ expressed concern over the prevalence of “pump and dump” schemes that exploit investors.
His remarks drew backlash, with critics accusing Binance of hypocrisy for frequently listing memecoins instead of utility-driven tokens. Others defended memecoins as a quick way to profit, fueled by celebrity endorsements like Elon Musk’s support for Dogecoin. CZ’s comments highlight ongoing tensions between speculative and practical uses of cryptocurrency.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.