Emily Walker
Memecoins have dominated the current cryptocurrency cycle, generating significant revenue for platforms such as Pump.fun and yielding substantial profits for investors. However, as the excitement around these tokens has intensified, some experts, including Changpeng Zhao, have raised concerns about their sustainability, calling for projects that offer tangible utility.
CZ Advocates for Functional Blockchain Uses
On Tuesday, Changpeng ‘CZ’ Zhao, the co-founder and former CEO of Binance, expressed his views on the evolving landscape of memecoins through a post on X, indicating that the situation is becoming “a little weird.”
CZ clarified his stance, stating that he is not opposed to memecoins but encourages the community to concentrate on developing practical blockchain applications. He noted that he does not wish to end the current memecoin excitement but rather to motivate more developers to create projects with genuine utility.
His remarks ignited a discussion among crypto enthusiasts, leading to mixed opinions. Some individuals agreed with CZ, labeling memecoins as a “distraction,” while others defended the ongoing hype, attributing it to a lack of utility from developers.
One community member claimed that the main appeal of utility tokens lies in their functionality, arguing that the overwhelming number of unfulfilled promises in whitepapers has pushed investors towards memecoins.
Conversely, others contended that memes possess a special ability to engage people and might lead to innovative fundraising and economic strategies in the future.
There were suggestions that investors and even Binance should prioritize memecoins boasting strong community support and backing projects, a sentiment previously voiced in the community.
It’s important to note that Binance has faced scrutiny over its recent listings of memecoins. This month, the exchange faced criticism for allegedly supporting pump-and-dump activities after featuring Solana-based tokens like ACT, PNUT, and WHY, which sharply rose in value before plummeting as the excitement faded. Users raised concerns about Binance’s listing methods, fearing they could foster an exploitative environment for investors. Leonidas, a co-founder of Bitcoin Ordinals explorer Ord.io, commented on the issue:
We can only assume that Binance is specifically targeting low cap “dead” memecoins that are controlled by a small number of insiders because these are the ones that are able to pay the largest percentage of the supply as the listing fee which Binance then “dumps” to generate revenue.
Strange Developments in Memecoins
CZ’s remarks appear to draw from a recent controversy involving the Pump.fun livestream feature, where numerous users misused the platform to promote their tokens. According to Bitrabo, this Solana-based memecoin launchpad faced backlash after a troubling trend emerged where token creators threatened to engage in violent behavior during livestreams if their tokens did not increase in value.
In light of these incidents, the crypto community urged the platform to deactivate the livestream feature and to provide clearer guidelines to users. On Monday, Pump.fun responded to the community’s concerns by suspending livestreams temporarily.
According to the announcement, the measure was implemented to “ensure the absolute safety” of users until the moderation systems are prepared to handle increased activity. The Pump team also committed to enhancing transparency regarding their rules and regulations.
