- Binance founder Changpeng Zhao has claimed that memecoins are now getting “a little weird” and called on the crypto community to get back to building real applications.
- Memecoins have tumbled in the past week after surging following the Trump election victory, with some like POPCAT and PNUT losing as much as 30%.
Is the memecoin season over, or is it just starting? Investors have been struggling with this question in the past week as nearly every memecoin tumbled on the price charts. Binance founder Changpeng Zhao believes that memecoins are distracting the crypto community and has called on the sector to get back to building real solutions.
CZ took to X to call memecoins out, stating, “I am not against memes, but meme coins are getting “a little” weird now. Let’s build real applications using blockchain.”
I am not against memes, but meme coins are getting “a little” weird now.
Let’s build real applications using blockchain.
— CZ 🔶 BNB (@cz_binance) November 26, 2024
CZ stressed that he’s not trying to end the memecoin season, nor is he against people investing in the fun tokens. “Everyone has their choice on what to invest or hold. Just encouraging more builders,” the former Binance CEO stated in a separate post.
CZ’s sentiments divided opinion. Some criticized him for speaking out against memecoins when his exchange was massively capitalizing on the hype around these tokens. As one community member pointed out, of the last seven token listings on the global exchange, six have been memecoins. Most of them were little known in the community before the exchange listed them but have blown up since, such as Peanut the Squirrel (PNUT).
Others pointed out that CZ’s memecoin rant came days after Binance launched two BNBChain memecoin futures, which were dumped almost immediately.
Memecoins: Yay or Nay?
Memecoins remain a polarizing aspect of the crypto sector. Some regard them as the best induction into the sector for newbies. Their fun nature takes away the fear of the complicated technology behind crypto. In fact, the first memecoin, DOGE, was created to poke fun at how serious Bitcoin and the other crypto holders were.
Memecoins have also been known to be the biggest gainers in bull markets. Even in the November rally, they have outpaced most cryptos. BTC, Solana and Ethereum, for instance, have gained around 30% since the months started. Dogecoin, Pepe and Bonk, in contrast, have gained over 100%. Year-to-date, Pepe has gained 1,300%, while Dogwifhat has gained 1,800%.
Memecoins have also revived some chains like Solana. As we reported a week ago, Solana recorded over $7.6 million in transaction fees in one day, and a majority of it was down to memecoin trading volume.
However, critics claim that memecoin distracts from the overall goal of crypto, which is to reinvent finance. A vast amount of resources that could have gone to chains that are offering real solutions, such as decentralized finance, has been redirected to the memecoins, derailing progress.
