Changpeng Zhao (CZ), the founder and former CEO of Binance, has sparked a controversy over meme coins in the cryptocurrency space. In a tweet, CZ acknowledged the entertainment value of meme coins, but criticized, "I'm not against memes, but meme coins are getting 'a bit' too much now. Let's build real applications using blockchain."
His remarks reflect concerns about the proliferation of low-utility tokens in the cryptocurrency market. This position continues to generate discussions among cryptocurrency investors, analysts, and industry thinkers. Additionally, the prices of some low-market-cap meme coins are rapidly plummeting.
Crypto Influencers Debate CZ's Remarks
Prominent cryptocurrency investor Crypto Nagato agreed with CZ's opinion and echoed the sentiment. He called for a "massive cleansing" and emphasized the contrast between the few meme coins that provide joy or humor and the majority that lack meaningful purpose or utility.
"I completely agree. Some top-tier memes are genuinely fun and give people a good feeling. But the other 99% are weird garbage. I can't wait for the massive cleansing," Crypto Nagato stated.
Meme coins are often created for fun, but their rise has raised concerns about long-term value. Allegations of market manipulation further complicate the discussion around meme coins. Binance is no stranger to related criticism. The exchange has recently been accused of facilitating meme coin pump-and-dump schemes.
According to BeInCrypto, the recent allegations pointed to instances where meme coin prices were artificially inflated, only to crash as insiders cashed out, leaving retail investors with significant losses. Such manipulation is a recurring problem, making it difficult for traders to distinguish legitimate investments from speculative bubbles.
Crypto analyst Dark Crypto Lord criticized Binance's listing policy, noting that the centralized exchange (CEX) platform has been listing meme coins instead of tokens with real-world utility.
"Unfortunately, Binance has been listing these kinds of things lately instead of coins with utility/applications," he tweeted.
Alongside this, Dark Crypto Lord urged Binance to put in more effort, particularly in guiding the market towards tokens that encourage actual development and innovation.
Despite the controversy, a significant portion of the cryptocurrency community still favors meme coins, viewing them as a form of entertainment or speculative gambling. A meme coin enthusiast, Ramonos, shared his perspective.
"The world is tired of reading thousands of pages of documents. We just want to enjoy the vibe with some pictures and gamble some money," Ramonos expressed.
This sentiment reflects the lighter, more humorous aspect of the meme coin phenomenon, exemplified by the popularity of tokens like Dogecoin and Shiba Inu. Their technical features, meme status, and community spirit continue to attract a wide following.
However, the reality of the meme coin market is not as glamorous. Recent Coinwire research has highlighted the high failure rate of tokens endorsed by influencers, with over 76% of such tokens failing to deliver on their promises.
This "meme coin mirage" serves as a warning to investors who are tempted to invest in meme coins backed by celebrities or influencers, emphasizing that the high interest in these tokens often leads to people jumping in without fully understanding the risks.
As the meme coin market remains controversial, the debate over their value and future direction remains unresolved. While some view the tokens in this sector as temporary fads lacking utility, others see them as catalysts for building communities.
However, it is clear that the cryptocurrency community is demanding a more responsible and transparent approach to meme coin development and listing. These demands arise as the sector faces increasing scrutiny and the need for accountability.
