Former Binance CEO Changpeng “CZ” Zhao has called on the Cryptocurrency community to shift its attention from memecoins to developing “real” blockchain applications.
On November 26, CZ expressed his growing distaste for the memecoin ecosystem. In a post on X, Zhao said memecoins were becoming “a little” weird instead of the fun they were in their early days.
Source: Changpeng Zhao
CZ stepped down as CEO of Binance in November 2023 as part of a plea agreement that imposed a $50 million fine and banned him from “any current or future activities in the management or administration” of Binance. The entrepreneur has since shifted his focus to supporting the development and education of the base layer in Web3.
Source: Changpeng Zhao
Several memecoins, including Dogecoin (DOGE) and Shiba Inu (SHIB), have maintained their popularity in 2021, fueled by support from Elon Musk and the broader crypto community.
Expectations beyond rumors
However, as the market shifted its attention to Bitcoin (BTC) and other projects that were creating value, memecoins lost their luster to projects that relied solely on hype.
See also: Scam alert: Lost $2.7 million to impostors!
While the majority of CZ's followers support his call to refocus on developing real decentralized applications (DApps) instead of just looking to cash in on the hype, some have accused his former cryptocurrency exchange, Binance, of listing memecoins with no clear use.
Binance’s cryptocurrency derivatives exchange, Binance Futures, continues to list memecoin trading pairs in response to public demand. However, the market prices of Why (WHY) and Cheems (CHEEMS) — two new memecoins listed on the platform on November 25 — have plummeted within a day of their listing.
Source: Memecoin_Space
Veteran investors have held Binance partly responsible for allowing users to be exposed to volatile investments.
Memecoin projects through the lens of the community
In contrast, the market performance of memecoins is at an all-time high. According to data from TinTucBitcoin and CoinMarketCap, the memecoin ecosystem has a total market capitalization of about $110 billion, accounting for 3.44% of the $3.19 trillion cryptocurrency market.
On November 25, Pump.fun — a decentralized platform for generating memecoins based on Solana — faced heavy criticism after a user of the platform threatened suicide during a livestream.
Source: Beau
While Pump.fun has acknowledged the community's concerns, they have defended the platform's moderation efforts.
However, Pump.fun eventually removed the live streaming feature from the platform.
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