Platforms like Pump.fun enable rapid meme coin creation, often becoming breeding grounds for scams and disturbing content.
Influencers, particularly those with large followings, see financial gains from promotions but leave followers with significant losses.
Binance founder and former CEO Changpeng Zhao on Tuesday voiced concerns about the current state of meme coins, calling their proliferation “a little weird.”
What Happened: In a tweet, Zhao clarified he isn't against memes but urged the crypto community to focus on building meaningful blockchain applications.
Zhao's remarks come amid growing scrutiny of platforms like Pump.fun, which have simplified the process of creating and launching meme coins.
These platforms allow anyone to mint tokens in minutes without requiring identity verification, making them a hotbed for scams and exploitation.
While designed to attract attention through features like live-streamed token launches, these tools have reportedly spiraled into disturbing displays of violence, fraud, and even animal abuse.
With little to no accountability, such platforms have created fertile ground for exploitation, leaving unsuspecting retail investors at the mercy of bad actors.
A recent report by CoinWire shed further light on the risks associated with meme coins.
Analyzing over 1,500 meme coins promoted by 377 influencers on X (formerly Twitter), the study found that 76% of these tokens eventually become “dead,” meaning they lose 90% or more of their value within three months of promotion.
While established meme coins like Dogecoin
DOGE/USD
andShiba Inu
DOGE/USD
have maintained liquidity and market relevance, the majority of promoted meme coins fail to replicate this success.
Only 3% of tokens managed to deliver the coveted 10x returns often promised by influencers, with larger influencers faring even worse—tokens they promoted delivered an average negative return of 89% within three months.
Zhao's comments align with a growing push within the crypto community for more responsible behavior from platforms and influencers.
Eric Chen, CEO and co-founder of Injective Labs, noted that influencers in the crypto space span a wide range of strategies, from promoting speculative tokens to offering more qualitative insights.
"While some influencers undoubtedly engage in questionable promotions, it's important not to generalize their actions to the entire community," Chen told Benzinga.
He emphasized that token performance depends on multiple factors, including broader market sentiment, whale activity, and retail investor participation.
However, Chen cautioned that influencers wield significant power over market trends and should act responsibly.
🔶Likke and Share the pinned post in my profile and comment nice 👌 and Earn 💸💸💸10USDt💸💸💸
🚨Hurry Up🚨