CZ Slams Memecoins, Pushes for Real Blockchain Innovation
Former Binance CEO urges shift from hype to real utility in blockchain
Changpeng “CZ” Zhao, former CEO of Binance, has called on the crypto community to move past the memecoin frenzy and focus on creating meaningful blockchain applications. Zhao expressed his frustration on Nov. 26, stating that memecoins have evolved from being amusing to “a little” weird.
Zhao resigned as Binance’s CEO in November 2023 as part of a plea deal that included a $50 million fine and a ban on managing Binance operations. Since stepping down, he has redirected his efforts toward fostering Web3 development and education.
Memecoins like Dogecoin and Shiba Inu surged in popularity during the 2021 crypto boom, largely fueled by Elon Musk and community backing. However, interest in these coins has waned as the market leans toward projects offering real value. Zhao’s critique received mixed responses; while many supported his call for utility-driven innovation, others pointed fingers at Binance for listing memecoins with no clear purpose.
Despite Zhao’s concerns, Binance’s derivatives platform continues to cater to public demand, listing tokens like Why (WHY) and Cheems (CHEEMS). However, these new memecoins crashed in value shortly after being introduced, raising investor concerns about market stability.
Memecoins still command significant market presence, with a combined capitalization of $110 billion—3.44% of the total $3.19 trillion crypto market. Yet, controversies persist. On Nov. 25, Pump.fun, a platform for creating Solana-based memecoins, faced backlash when a user threatened self-harm during a livestream. While the platform addressed concerns and removed the livestream feature, it highlighted the risks associated with the memecoin culture.
Zhao’s plea underscores a growing need for the crypto space to evolve, emphasizing long-term value over fleeting hype.