Former CEO and founder of Binance, Changpeng Zhao, has expressed his displeasure at the explosive rate of meme coins hitting the crypto market on a daily basis. On Tuesday, CZ, in a post via his official X page, stated that meme coins are becoming a little bit weird.
More so, the former Binance boss established that he’s not against meme coins but calls for more real applications using blockchain technology. The statement coincides with the recent price surge of meme coins, with popular tokens like DOGE, PEPE, WIF, BONK, and BRETT all recording astronomical gains.
According to Coinmarketcap, in the last 30 days, DOGE has recorded an 181% increase, BRETT soared by 74.79%, and PEPE netted a 105% price gain. Additionally, market data indicated that within that period, the market cap of meme coins went up drastically from $55.3 billion to more than $100 billion.
With the cryptocurrency market holding a market cap of $3.19 trillion, meme coins contribute less than 4% to the enormous valuation. Despite how the meme coin sector recorded massive gains in recent times, market interest is gradually moving towards Bitcoin and other utility-centric cryptocurrencies.
Some analysts opined that the meme coin market is overhyped, underlying how most investors are skeptical about holding onto most meme coins long-term. As most meme coins don’t offer any actual use case, bad actors have capitalized on that vulnerability to launch various pump-and-dump projects, attracting ignorant investors.
How the Crypto Community Responded to Changpeng Zhao
Considering his reputation among many enthusiasts, the recent submission of CZ on meme coins has attracted a host of responses. While many individuals take sides with Changpeng Zhao, calling for more real applications on blockchain, some investors quickly pointed out how Binance has been a hotbed for meme coins.
In the comment section, one user pointed out how the crypto derivatives organ of the exchange listed meme coin trading pairs to meet the demands of investors. Recently, two meme coins, Why (WHY) and Cheems (CHEEMS), listed on the Binance, went down in less than 24 hours of listing.
On the flip side, another explained that it may be challenging to end the meme coin craze, citing how many influential individuals from the industry, including Elon Musk, are advocating for meme coins. In response, Changpeng Zhao highlighted that his initial message is not to pursue the end meme coins; instead, the former Binance CEO said he’s only encouraging more builders.
Read More: