As a seasoned analyst with over two decades of experience in the tech and financial sectors, I have seen countless trends come and go. The memecoin phenomenon, while entertaining and profitable for some, has certainly raised concerns that cannot be ignored.
In this current phase, meme-based cryptocurrencies have been grabbing headlines and amassing substantial earnings for platforms such as Pump.fun, while offering significant financial gains to crypto investors. Nevertheless, some observers are expressing concern about the escalating craze surrounding these tokens, with influential figures like Changpeng Zhao advocating for projects that provide ‘real’ practical use instead.
CZ Calls For More Real Blockchain Applications
On Tuesdays, Changpeng ‘CZ’ Zhao, co-founder and ex-CEO of Binance, voiced his opinions regarding the current trends in meme coins, expressing that they have become “a bit peculiar” in a post.
In simpler terms, CZ made it clear that he supports the sector as a whole, but emphasized the importance of concentrating on creating practical applications using blockchain technology. He also stated that his intention was not to halt the popularity of meme coins, but rather to encourage more builders within the community and projects with real-world use cases.
His statement sparked a debate among crypto investors, who shared split opinions about this issue. Some users agreed, calling memecoins a “distraction,” while some disagreed with CZ’s comments, claiming the ongoing frenzy was utility developers’ fault.
A community member argued that “the only fun thing about utility tokens is the fact that it has utility,” adding that “reading thousands of pages in the name of Whitepaper, which they end up not delivering 10%” of is what drove investors to memecoins.
Additionally, some individuals argue that memes hold significant value because they possess a unique ability to resonate with people. They believe that this connection could lead to groundbreaking fundraising initiatives and novel economic applications in the future.
Some debated that investors, and even Binance, should focus on memecoins with strong communities and projects behind them, an argument brought up before by the community.
It’s important to mention that the worldwide cryptocurrency exchange established by CZ has been under fire for its recent additions of memecoins to its platform. This month, Binance has received criticism for apparently encouraging pump-and-dump schemes when it listed Solana-based tokens such as ACT, PNUT, and WHY instead of more popular meme-inspired cryptocurrencies with larger market caps.
After being listed on the exchange, these tokens experienced a substantial price increase, but they later plummeted following the initial excitement. Users raised concerns about Binance’s listing procedures, arguing that they might foster an unbalanced and hazardous market for investors. In response to this issue, Leonidas, one of the co-founders of Bitcoin Ordinals explorer Ord.io, offered his perspective.
It seems that Binance is focusing on less valued “zombie” meme tokens with limited ownership, primarily because these coins can provide a larger proportion of their total supply as a listing fee. This fee, in turn, is cashed out by Binance for income generation, often resulting in a sell-off of the token.
Memecoins ‘Weird’ Development
It appears that the comments from CZ are reminiscent of the recent uproar surrounding the Pump.fun livestream, where a large number of users exploited the live streaming function to advertise their tokens inappropriately. According to Bitcoinist, on Monday, the Solana-based memecoin launchpad faced criticism as numerous users initiated an unsettling trend to promote their coins.
According to online sources, the creators of meme-based cryptocurrencies were allegedly making threats of violent and harmful actions, such as abusing children or animals, or endangering their own families, during Live broadcasts if their coins’ value failed to increase.
Due to the concerns raised by the crypto community, the platform agreed to temporarily pause livestreams and improve transparency regarding its rules and guidelines. This decision was announced by Pump.fun on Monday.
The measure was taken to “ensure the absolute safety” of users and will go “until the moderation infrastructure is ready to deal with the heightened levels of activity.” Ultimately, the Pump team promised more transparency about rules and regulations
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2024-11-27 12:12