News Scrap

Key Takeaways

Changpeng Zhao advocates for focusing on real blockchain applications instead of meme coins.
The meme coin sector holds a market capitalization of $116 billion, despite criticism over utility.

Binance’s former CEO Changpeng Zhao urged the crypto community to move away from meme coins and focus on developing real blockchain applications, expressing concerns about the current state of meme coin projects.

I am not against memes, but meme coins are getting “a little” weird now.

Let’s build real applications using blockchain.

— CZ 🔶 BNB (@cz_binance) November 26, 2024

In a Nov. 26 post on X, Zhao noted that meme coins have evolved from being funny in their early stages to becoming “a little” weird.

Zhao stated in a reply to a comment on X, “Not trying to end anything. Everyone [can] choose what to invest or hold. Just encouraging more builders.”

Zhao, who stepped down as Binance’s CEO in November 2023 following a $50 million fine and restrictions on managing the exchange, has since redirected his efforts toward supporting Web3 development and education.

The speculative nature of meme coins has drawn criticism for encouraging investments lacking clear utility.

The debate over meme coins extended to new listings like Cheems (CHEEMS), which Binance Futures listed on Nov. 25.

Following its listing, Cheems plummeted by over 50%, prompting pseudonymous trader Lyxe to respond to Zhao’s post, saying,

“So why are Binance listing pump and dump memecoins then?” alongside a screenshot of Cheems’ price chart.

The meme coin sector currently holds a combined market capitalization of $116 billion, representing 3.4% of the $3.2 trillion crypto market, according to data from Coingecko.

The ongoing debate around meme coins is amplified by controversies such as the Pump.fun incident on Nov. 25, where a user threatened suicide during a livestream.

The decentralized platform, known for enabling the creation of Solana-based meme coins, faced backlash but defended its moderation efforts before ultimately removing the live-streaming feature.