Amid the growing dominance of memecoins in the cryptocurrency industry, Binance founder Changpeng Zhao (CZ) has urged the community to focus on developing genuinely useful blockchain applications.
On November 26, CZ shared his thoughts on the memecoin frenzy via the social media platform X (formerly Twitter). While acknowledging their popularity, he expressed concerns about the trend, describing it as "a little strange." According to CZ, most memecoins lack real value and rely heavily on hype and social media trends to attract investors. He encouraged developers to pivot toward building blockchain applications that offer tangible benefits instead of chasing short-term fads.
CZ emphasized, “I’m not against memes, but meme money is getting a bit strange. Let’s build real use-case blockchain applications.”
However, not everyone agrees. Some community members defend memecoins, arguing that they play a role in driving retail investor participation in the cryptocurrency market. Prominent figures like Elon Musk have endorsed certain memecoins, making their complete removal from the ecosystem almost impossible.
Nonetheless, CZ’s concerns are not unfounded. Recent controversies, such as the case involving the memecoin platform Pump.fun, have raised alarms about the risks in this space. Even so, the memecoin sector continues to experience rapid growth. With participation from both individual and institutional investors, such as the $20 million fund launched by DWF Labs, the market capitalization of memecoins has reached a peak of $120 billion and could continue to rise.
The future of memecoins remains a polarizing topic. However, CZ’s call to prioritize utility serves as a reminder that the sustainability of the cryptocurrency industry relies on the real value it delivers. Blockchain has immense potential, and for long-term growth, building applications with meaningful use cases will always be the cornerstone.