Binance founder Changpeng Zhao has shared concerns about the increasing hype surrounding memecoins, while also calling for the development of more utility-focused tokens.
In a post on November 26 on X (formerly Twitter), Zhao acknowledged the popularity of memes but expressed concerns about their current direction, describing them as 'a bit strange.'
According to him, most memecoins lack real value and rely heavily on hype and social media trends to attract investors. Instead, he encourages developers to shift their focus to creating blockchain applications with tangible utility rather than chasing short-term trends.
Zhao said:
I don't oppose memes, but meme coins are becoming 'a bit' strange. Let's build practical applications using blockchain.
Meanwhile, a community member points out that figures like Elon Musk have endorsed certain memecoins, making it difficult to curb their popularity. However, Zhao clarified that his intention is not to eliminate memecoins but to inspire more developers to focus on creating products with practical applications.
Despite Zhao's calls, the cryptocurrency community remains divided. While some agree with his call for utility-based innovation, others defend memecoins as a unique aspect of the cryptocurrency ecosystem that could enable retail adoption.
Zhao's comments seem to be influenced by the growing controversies surrounding the launch of memecoins. Recently, the memecoin company Pump.fun, based in Solana, faced backlash after some issuers used the company's platform to share harmful content, including threats related to token price targets.
Memecoin Growth
The memecoin industry remains one of the fastest-growing sectors in the cryptocurrency space despite its volatility and association with scams.
Retail investors, attracted by the potential for massive profits, often overlook the risks. This enthusiasm has made memecoins a focal point in the current bull market cycle.
Last week, DWF Labs launched a $20 million fund dedicated to investments in memecoins, indicating growing institutional interest in this sector.
According to CryptoSlate data, the market capitalization of memecoins has doubled to a peak of $120 billion since Donald Trump's victory in the U.S. presidential election, reflecting their growing popularity.
Meanwhile, cryptocurrency analysts like Alex Obchakevich predict that the sector could reach $200 billion, thanks to increased market liquidity and optimistic market sentiment.