Changpeng Zhao, former CEO of Binance, urges the cryptocurrency community to prioritize significant blockchain advancements over speculative memecoins. Zhao slammed the memecoin environment in a recent X post, calling it a “weird” and overhyped world, rather than one of lighthearted fun.
Zhao has shifted his focus to grassroots Web3 teaching and development since stepping down as Binance’s CEO in November 2023 as part of a plea agreement that included a $50 million fine and restrictions on his engagement in the company.
Zhao’s statements show a widening split in the cryptocurrency world. While some investors continue to fuel the memecoin fever, with tokens such as Dogecoin and Shiba Inu remaining popular since their peak in 2021, others, including Zhao, believe that true blockchain promise rests in applications that provide tangible value rather than speculative rewards.
Despite Zhao’s urging, Binance Futures has continued to list memecoin trading pairs in response to market demand. However, recent launches such as Why (WHY) and Cheems (CHEEMS) saw dramatic price drops within 24 hours, raising concerns about the coins’ volatility and lack of utility.
The broader memecoin market continues to hold significant value, boasting a total valuation of approximately $110 billion, which represents 3.4% of the overall cryptocurrency market. However, many in the crypto field, including seasoned investors, have criticized sites like Binance for allowing exposure to volatile investments.
Situations like the Pump.fun case, where a user threatened self-harm during a live webcast, intensified the controversy surrounding memecoins. In reaction, the platform removed the live-streaming feature while upholding its moderation policies.
Zhao’s call for a shift in focus is shared by many in the industry, who feel that the future of cryptocurrencies lies in real-world applications rather than speculative bubbles. As market dynamics shift, focusing on offering utility through blockchain innovation may lead the path for a more sustainable crypto environment.
