On November 26, former Binance CEO Changpeng Zhao (CZ) expressed concern about the surge in popularity of memecoins and urged the focus to shift to meaningful blockchain innovation.
Memecoin emerges as a target of criticism
Changpeng Zhao said in an X article that memecoins are “getting a little weird” and stressed the need to develop “useful applications” with real value.
His comments sparked a debate about the practicality of memecoins, which have little utility.
CZ posted on X platform: "I’m not against Meme coins, but Meme coins have become a bit ‘strange’ now. Let’s use blockchain technology to build real-world applications." pic.twitter.com/qqTklK39Ud
— Chelsea Janna (@AirDropAgent888) November 26, 2024
Memecoins are often marketed through viral campaigns on social media, gaining popularity quickly but often failing to provide long-term value or sustain growth.
According to CoanWire’s research, most meme coins lose 90% of their value within three months of launch, leaving most investors with losses.
Although the memecoin craze is on, Changpeng Zhao’s comments highlight the risks memecoins pose in a crypto market where trust is crucial for long-term growth.
The recent controversy surrounding Solana’s dApp Pumpfun has brought the dangers of memecoins into the spotlight. A specific feature of Pumpfun encouraged users to gain popularity in various inappropriate ways. One user even threatened to harm himself in order to manipulate the coin’s market cap.
Ripple CEO Brad Garlinghouse also chimed in, saying projects like Dogecoin don’t contribute much to the cryptocurrency ecosystem.
Ripple CEO Brad Garlinghouse
I get a ton of shit when i say these things but I’m going to say it anyway, I don’t think Dogecoin has been a good thing for the industry.It’s about solving real Problems . 🏁 pic.twitter.com/XMeEWaJz8O
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) May 31, 2024
Ethereum co-founder Vitalik Buterin also criticized celebrity-backed memecoins, arguing that cryptocurrency projects should provide “value to society” rather than chasing short-term profits.
Voice for Responsible Development
The popularity of MemeCoin demonstrates the importance of responsible innovation in the blockchain industry. While MemeCoin may attract new investors, its lack of practical value risks undermining trust in the entire crypto ecosystem.
However, not all of the impact of memecoins is negative. For example, the popularity of memecoins has contributed significantly to the rapid growth of the Solana ecosystem.
Solana Chain has hit a record high of 5.9 million USD in revenue, showing that trends can sometimes provide short-term benefits to the crypto ecosystem.
Changpeng Zhao’s suggestion to prioritize projects with real utility is in line with the growing need for a broader, sustainable growth in cryptocurrencies.
Ultimately, the future of the entire industry will be determined by whether the focus of the virtual asset market shifts from speculative businesses to meaningful projects and whether the potential of blockchain technology to drive positive change is realized.
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