Originally published on: November 26, 2024
Changpeng Zhao, the former CEO of Binance, is calling on the crypto community to move away from memecoins and start focusing on developing “real” blockchain applications. In a recent post, Zhao expressed his growing concerns about the memecoin ecosystem, stating that these coins are becoming more bizarre and less amusing as they grow.
After stepping down as Binance’s CEO in November 2023 following a legal settlement that prohibited him from future involvement with the exchange, Zhao has turned his attention to supporting grassroots development and education in Web3.
While memecoins like Dogecoin and Shiba Inu gained popularity in 2021, their hype has dwindled as the market shifts towards projects that offer tangible value. Zhao’s call for a renewed focus on building decentralized applications (DApps) has garnered support from many in the crypto community.
Despite Binance’s crypto derivatives exchange, Binance Futures, continuing to list memecoin trading pairs to meet public demand, the market value of new memecoins like Why and Cheems plummeted shortly after being listed on the platform.
Some investors hold Binance accountable for enabling exposure to volatile investments by listing memecoins with unclear utility. However, the overall market capitalization of the memecoin ecosystem remains high, reaching around $110 billion, representing a significant portion of the total crypto market.
In a recent incident, Pump.fun, a platform for creating Solana-based memecoins, faced backlash after a user threatened self-harm during a livestream. Despite addressing community concerns and enhancing moderation efforts, Pump.fun decided to remove the live-streaming feature from its platform.
As the crypto market continues to evolve, Zhao’s push for real blockchain applications over memecoins underscores the importance of sustainable growth and innovation in the industry. Be sure to stay updated on the latest developments by subscribing to our Markets Outlook newsletter for critical insights and investment opportunities.
