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Memecoins have been the top narrative of this cycle, bringing in millions of dollars in revenue to platforms like Pump.fun and generating massive profits for crypto investors. However, many consider that the frenzy around these tokens has taken a concerning turn as the cycle progressed, with figures like Changpeng Zhao urging for projects with ‘real’ utility.
CZ Calls For More Real Blockchain Applications
On Tuesday, Binance co-founder and former CEO Changpeng ‘CZ’ Zhao shared his thoughts on the recent evolution of the memecoins, stating that they are “getting a little weird now” on an X post.
CZ clarified that he is not against the sector but asked the community to focus on building “real applications using blockchain.” He further explained that he wasn’t trying to “end” the memecoins craze but encouraging more builders in the community and projects with utility.
His statement sparked a debate among crypto investors, who shared split opinions about this issue. Some users agreed, calling memecoins a “distraction,” while some disagreed with CZ’s comments, claiming the ongoing frenzy was utility developers’ fault.
A community member argued that “the only fun thing about utility tokens is the fact that it has utility,” adding that “reading thousands of pages in the name of Whitepaper, which they end up not delivering 10%” of is what drove investors to memecoins.
Meanwhile, others suggested that memes matter as they have the “unique power to connect with people” and could “pave the way for innovative fundraising and economic applications in the future.”
Some debated that investors, and even Binance, should focus on memecoins with strong communities and projects behind them, an argument brought up before by the community.
It’s worth noting that the global crypto exchange founded by CZ has been heavily criticized for its recent memecoins listing. This month, Binance faced backlash for allegedly promoting pump-and-dump schemes after listing Solana-based tokens like ACT, PNUT, and WHY instead of other large-cap meme-based cryptocurrencies.
These tokens saw a significant price jump after being added to the exchange but recorded massive drops after the initial frenzy was over. Users questioned Binance’s listing practices, suggesting they could create an unfair and harmful environment for investors. Bitcoin Ordinals explorer Ord.io’s co-founder, Leonidas, weighed in on the matter:
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.
Memecoins ‘Weird’ Development
CZ comments seem inspired by the recent Pump.fun livestream controversy, where hundreds of users misused the platform’s live streaming feature to promote their tokens. As reported by Bitcoinist, the Solana-based memecoin launchpad was under fire on Monday after numerous users started a concerning “trend” to promote their tokens.
Online reports showed that memecoins creators were threatening to commit violent and harmful acts, like child and animal abuse, or harm their families, on Livestream if their tokens didn’t pump.
As a result, the crypto community urged the platform to shut down the livestream feature and be more transparent with users about their guidelines. On Monday, Pump.fun addressed the community’s concerns, announcing the temporary halt of livestreams on the platform.
The measure was taken to “ensure the absolute safety” of users and will go “until the moderation infrastructure is ready to deal with the heightened levels of activity.” Ultimately, the Pump team promised more transparency about rules and regulations
Featured Image from Unsplash.com, Chart from TradingView.com
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