Why Binance’s Changpeng ‘CZ’ Zhao Calls Meme Coins Weird?

by

As a seasoned crypto investor with more than a decade of experience in this wild and unpredictable market, I can’t help but feel a mix of amusement and concern when it comes to meme coins. On one hand, who doesn’t love a good meme? They bring a bit of fun and lightheartedness to an otherwise complex and often intimidating world. But on the other hand, it’s clear that we’ve reached a point where some of these projects are getting “a little” weird, as Binance founder Changpeng Zhao so eloquently put it.

On Tuesday, Binance founder Changpeng ‘CZ’ Zhao voiced his disapproval of the current meme coin market, labeling it as “odd.” Instead, he advocates for constructing practical applications based on blockchain technology. This remark from Zhao has added to the downward trend in some popular meme cryptocurrencies like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and BONK, causing them to drop by 9-10%. These comments were made as the craze for meme coins has noticeably escalated this year in 2024.

Changpeng Zhao Shows Concerns on Meme Coin Frenzy

Changpeng Zhao, the founder of Binance, voiced worries about the escalating fame of meme-based cryptocurrencies. Although he acknowledges humor in memes, he finds the current trend somewhat peculiar or unusual.

In a recent statement, Zhao urged the crypto community to shift focus toward developing real-world applications using blockchain technology. The Binance founder also emphasized the need for more practical and sustainable uses in this space.

I am not against memes, but meme coins are getting “a little” weird now.

Let’s build real applications using blockchain.

— CZ BNB (@cz_binance) November 26, 2024

The world of meme-based cryptocurrencies is currently abuzz with action, featuring coins such as PNUT, GOAT, and others. These coins primarily ride on trends rather than focusing much on practical applications. In a remarkably swift timeframe, these memes have yielded returns as high as 2,000%, catapulting them into the upper echelons of popular meme coins. However, due to the intense speculative nature of this activity, it is crucial for individual and novice investors to exercise caution as these markets are prone to significant volatility.

As a researcher delving into the realm of cryptocurrencies, I observed that other key figures in the industry concurred with Changpeng Zhao’s observations. In response, well-known analyst IncomeSharks remarked, “They started off as amusing, then became humorously intriguing, but now they’ve escalated to being quite bizarre and seemingly desperate.” Furthermore, Bitcoin analyst Willy Woo penned down, “Their behavior has transitioned from entertaining to puzzling, and now appears unusually desperate.

From being the pioneering blockchain application, Satoshi Dice has led us on a complete loop back, with the emergence of meme coins and swaps today. It appears that trustless gambling is gaining popularity once more.

Binance Faces Backlash on Listing Meme Futures

Changpeng Zhao’s remarks regarding meme-based cryptocurrencies followed Binance’s introduction of futures trading for the meme coins WHY and CHEEMS on the BNB Chain the previous day. Yet, soon after their debut, the prices of both tokens plummeted significantly. A user on the X platform, Dan Crypto Larp, noticed this drop and commented on it.

Regrettably, Binance seems to be focusing on listing speculative assets rather than those with practical uses or applications these days. Given its position as the world’s top cryptocurrency exchange, I believe it has a responsibility to foster quality development. It would be great if you were back in charge to guide the platform towards a more beneficial course.

As a crypto investor, I’ve found myself navigating turbulent waters today as top coins in the sector have been hit hard by selling pressure, with Bitcoin plunging below $94,000 following Donald Trump’s tariff increase on Monday. At this moment, it appears that Dogecoin (DOGE) has taken a significant dive of over 10%, much like Pepe Coin (PEPE), Bonk (BONK), and Floki Inu (FLOKI). Rumors are swirling that Elon Musk might be discreetly promoting PEPE Coin, following his long-standing support for DOGE.

Read More

2024-11-26 13:06