Binance founder Changpeng Zhao notes ‘weird’ memecoin mania, urges utility innovation Binance founder Changpeng Zhao notes ‘weird’ memecoin mania, urges utility innovation
Binance's Zhao urges developers to prioritize blockchain utility over meme hype.
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Updated: Nov. 26, 2024 at 2:19 pm UTC
Web Summit / CC BY 2.0 / Flickr. Remixed by CryptoSlate
Binance founder Changpeng Zhao has shared concerns over the growing hype surrounding memecoins while urging to develop more utility-driven tokens.
In a Nov. 26 post on X (formerly Twitter), Zhao acknowledged the popularity of memes but expressed unease over their current direction, describing them as “a little weird.”
According to him, most memecoins lack real-world value and rely heavily on hype and social media trends to attract investors. Instead, he encouraged developers to shift their focus toward creating blockchain applications with tangible utility rather than riding short-lived trends.
Zhao stated:
“I am not against memes, but meme coins are getting ‘a little’ weird now. Let’s build real applications using blockchain.”
Meanwhile, one community member pointed out that figures like Elon Musk have endorsed certain memecoins, making it challenging 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 appeal, the crypto community remains divided. While some agree with his call for utility-driven innovation, others defend memecoins as a unique aspect of the crypto ecosystem that could enable retail adoption.
Zhao’s comments appeared to have been influenced by the rising controversies linked to memecoin launches. Recently, the Solana-based memecoin deployer Pump.fun faced backlash after some issuers used its platform to share harmful content, including threats tied to token price targets.
Memecoins growth
The memecoin sector remains one of the fastest-growing areas in crypto despite its volatility and association with scams.
Retail investors are drawn by the potential for massive returns, often overlooking the risks. This enthusiasm has propelled memecoins into the spotlight during the current bull market cycle.
Last week, DWF Labs launched a $20 million fund dedicated to memecoin investments, signaling growing institutional interest in the sector.
According to CryptoSlate’s data, the market cap of memecoins has more than doubled to a peak of $120 billion since Donald Trump’s US presidential election victory, reflecting their surging popularity.
Meanwhile, crypto analysts like Alex Obchakevich predict that the sector could reach $200 billion, driven by increased market liquidity and bullish market sentiment.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.
South African-born Elon Musk has founded several companies, including X.com (which later became PayPal), SpaceX and Tesla Motors.
