Changpeng Zhao, the Ex CEO and founder of Binance has subtly knocked the concept of memecoins calling for more real applications backed by Blockchain technology.
Changpeng Zhao’s comment comes at a time when the global crypto community is reassessing the importance of memecoins following the madness happening on Solana’s memecoin generator Pump. fun.
The meme coin generator pumps out a staggering 10,000 memecoins every day with most of them being rug pull projects polluting the entire crypto space.
CZ in his statement said he is not actually against memecoins but rather called for more applications backed by real-world utilities, unlike memecoins which are usually community-driven.
The Ex Binance-CEO took to his X page to share his opinions on memecoins sparking a conversation on the viability of this particular niche of crypto assets.
“I am not against memes, but meme coins are getting “a little” weird now. Let’s build real applications using blockchain”. Changpeng Zhao said
The Argument
CZ’s comment on memecoins sparked an argument in the crypto space dividing opinion on the issue.
- Some argued that despite memecoins generating millions of dollars for founders and investors, the memecoin category is a distraction to the crypto community from building real-world tokens.
- Others countered by revealing the boring nature of utility tokens which often underdeliver on the promise of their white papers.
“The only fun thing about utility tokens is the fact that it has utility, “reading thousands of pages in the name of Whitepaper, which they end up not delivering 10%” of is what drove investors to memecoins” A community member argued.
- Others debated that top crypto exchanges like Binance and Bybit should invest more in memecoins with strong communities and projects behind them.
- Binance has initially faced a backlash for listing suspicious memecoins on their exchange which might be pump and Dump schemes. The memecoins include PNUT, ACT, and WHY, which pumped and dumped raising concerns about Binance’s credibility.
Bitcoin Ordinals explorer Ord.io’s co-founder, Leonidas, weighed in on the matter:
“We can only assume that Binance is specifically targeting low cap “dead” memecoins that are controlled by a small number of insiders because these are the ones that are able to pay the largest percentage of the supply as the listing fee which Binance then “dumps” to generate revenue,” Leonidas stated
What to Know
- Memecoins are crypto assets inspired by internet memes or popular figures. The crypto asset has no real utility and is backed by the strength of its community. Memecoins are the rave of the moment and millions have been printed by memecoin traders in recent months.
- Memecoins like PNUT and the Chill Guy made investors millions of dollars within a space of one week.