Changpeng Zhao advocates for ‘real’ blockchain apps over memecoins

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As a seasoned crypto investor with over a decade of experience in this dynamic and ever-evolving market, I find myself aligning strongly with CZ’s recent call to action for the crypto community to focus more on building real blockchain applications instead of chasing memecoins. While memecoins have undeniably brought a fresh wave of excitement and engagement to the crypto world, their longevity has been questionable, especially when compared to projects delivering tangible value.

Previously leading Binance’s team, Changpeng “CZ” Zhao, has encouraged the cryptocurrency community to prioritize the development of practical blockchain applications rather than concentrating on meme-based coins.

On November 26th, CZ expressed his increasing dislike towards the meme coin sector. In a recent post on X, Zhao commented that meme coins have become “slightly” odd rather than amusing, contrasting their initial playful phase.

In November 2023, CZ resigned as CEO of Binance due to a plea agreement that included a $50 million penalty and barred him from participating in the ongoing or future management of Binance. Since then, this business leader has redirected his efforts towards fostering community development and education within the Web3 sphere.

Various internet-based cryptocurrencies, such as Dogecoin (DOGE) and Shiba Inu (SHIB), have managed to maintain their popularity since last year, fueled primarily by endorsements from Elon Musk and the wider digital currency enthusiasts.

Expecting more than hype

Yet, as investor focus moved towards Bitcoin (BTC) and similar projects that provide value, the appeal of memecoins waned because they were primarily based on hype rather than substance.

Amongst the majority of CZ’s supporters, there was agreement to prioritize creating genuine decentralized applications (DApps), rather than capitalizing on cryptocurrency hype. However, a few critics pointed fingers at his previous crypto exchange, Binance, for listing memecoins that lacked apparent utility.

On Binance’s cryptocurrency derivatives exchange, Binance Futures, there has been a trend of adding trading pairs for memecoins based on public interest. However, the value of Why (WHY) and Cheems (CHEEMS), two recently listed memecoins on the platform as of Nov. 25, significantly dropped shortly after their listing.

Experienced investors have pointed fingers at Binance, suggesting that the platform bears some accountability for not adequately preventing access to questionable investment options.

Memecoin projects on community’s radar

Conversely, the value of memecoins in the market is currently at its peak. As per CryptoMoon Markets Pro and CoinMarketCap statistics, the overall market capitalization of the memecoin environment amounts to around $110 billion, which equates to approximately 3.44% of the total $3.19 trillion crypto market.

On November 25th, the decentralized memecoin creation platform Pump.fun encountered significant backlash following an incident where one of its users streamed a threatening suicide attempt during a live broadcast.

Despite addressing the community’s worries, Pump.fun chose to justify their moderation actions on the platform.

However, Pump.fun eventually removed the live-streaming feature from its platform.

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2024-11-26 13:12