Former CEO of Binance Changpeng 'CZ' Zhao has voiced concerns about the rising popularity of meme coins, urging blockchain developers to shift their focus towards utility-based improvements.
In a post on November 26 on X, Zhao described the meme coin trend as "a bit odd" and urged creators to prioritize building meaningful applications with real value instead of chasing trends.
Meme coins often rely on viral marketing and social media spread to capture the fleeting attention of investors. While they may yield quick profits for a select few, the lack of real utility or practical application often leads to significant losses for the majority once the frenzy subsides.
CZ's statements have reignited conversations about the meme coin frenzy, highlighting concerns about their minimal real-world value. One user commented:
"They shift from fun, funny, then extremely bizarre and desperate."
CZ's statement comes amid controversy surrounding the meme crypto platform Pump.fun based in Solana, which is facing backlash for violent behavior streamed through its live feature. On November 25, Pudgy Penguins' safety director, Beau, flagged a live stream where a user threatened self-harm due to their token's market cap, urging Pump.fun to disable this feature and provide support. Beau described the live streaming function as "out of control" and called for its removal.
The hype surrounding meme coins has led many prominent influencers on X to promote these coins as quick money-making opportunities. However, a report from CoinWire has revealed a harsh reality: most meme coins are worthless, causing many investors to suffer heavy losses. The report highlights that 76% of influencers on X have promoted meme coins that are now defunct, with two out of three coins they endorsed ultimately losing all value. CoinWire states,
"Our research reveals a troubling truth: the majority of these meme coins are dead and most investors have incurred significant losses," emphasizing the risks of influencer-driven promotions in the meme crypto market.