Binance founder Changpeng Zhao (CZ) has criticized memecoins on Twitter. He acknowledged their entertainment value but said, “I’m not against memes, but memecoins are getting ‘a bit’ weird. Let’s focus on real-world applications with blockchain.”
His comment reflects growing concerns about the proliferation of low-utility tokens in the crypto market. This stance continues to fuel discussions among investors, analysts, and thought leaders in the crypto industry.
Changpeng Zhao criticises memecoins
Echoing CZ’s sentiment, crypto investor Nagato agreed. He called for “a big cleanup,” highlighting the contrast between the small number of memecoins that bring joy or humor and the overwhelming majority that seem to lack purpose or meaningful utility.
Couldn't agree more. Some top-notch memes are hilarious as hell and really give people good vibes. But the other 99% are just weird stuff. Can't wait for a big cleanup, Nagato commented.
While memecoins are often created for fun, their rise has raised concerns about their long-term value. Allegations of market manipulation further complicate the discussion. Binance is no stranger to criticism in this regard. The exchange recently faced accusations of facilitating pump-and-dump schemes involving memecoins.
As reported by BeInCrypto, recent allegations have pointed to cases where memecoin prices were artificially inflated. Soon after, however, their value collapsed when insiders sold, leaving retail investors with significant losses. This type of manipulation is a recurring problem. It makes it difficult for traders to distinguish between legitimate investments and speculative bubbles.
Crypto analyst Dark Crypto Larp has criticized Binance’s listing policies. He pointed out that the platform, as a leading centralized exchange (CEX), has been listing memecoins instead of tokens with real-world utility.
Unfortunately, this is what Binance currently has listed instead of utility/application coins, he tweeted.
With that, Dark Crypto Larp called on Binance to do more. Specifically, the platform should direct the market towards tokens that incentivize real development and innovation.
Despite these controversies, a significant portion of the crypto community continues to favor memecoins. They see it as a form of entertainment or speculative gambling. One memecoin enthusiast, Ramonos, shared his perspective.
The world is tired of reading thousands of pages of documentation. We just want to like an image and put our money on it, Ramonos expressed.
This commentary reflects the lighter, more humorous side of the memecoin phenomenon, where tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB), among others, have gained popularity. Their technical characteristics, meme status, and sense of community continue to foster a broad following.
Hidden risks
However, the reality of the memecoin market is far from glamorous. A recent study by CoinWire highlighted the high failure rate of influencer-backed tokens. Specifically, over 76% of these tokens fail to deliver on their promises.
The report, “Memecoin Mirage,” serves as a cautionary tale for investors looking to capitalize on celebrity- or influencer-endorsed memecoins. It emphasizes that the hype surrounding these tokens often leads to disappointment for those who jump in without fully understanding the risks involved.
As the memecoin market remains controversial, the debate surrounding its value and future direction is far from settled. While some see memecoin tokens as a passing trend that lacks utility, others see them as a catalyst for community building.
What is clear, however, is that the crypto community is calling for a more responsible and transparent approach to the development and listing of memecoins. These calls come as the industry faces increasing scrutiny and the need for accountability.
Binance’s CZ article criticizes memecoins and sparks debate on crypto standards was first seen on BeInCrypto Brasil.
