Meme Coin Mania: CZ Zhao Calls for Shift to Real Blockchain Applications
Meme coin fever continues to grip the crypto world, with prices skyrocketing and controversies escalating. However, former Binance CEO Changpeng “CZ” Zhao has voiced his concerns, urging the crypto community to pivot from meme coins to building “real applications using blockchain.”
CZ Shares Concerns Over Meme Coin Trends
On November 26, Zhao took to X to express his distaste for the meme coin ecosystem, which he said is “getting a little weird now.” He reminisced about the early days when meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) offered light-hearted fun but emphasized the need for the industry to focus on value-driven decentralized applications (DApps).
Since stepping down as Binance CEO in November 2023 as part of a plea deal that included a $50 million fine, Zhao has shifted his focus to grassroots Web3 development and education. While many of his followers supported his call for innovation, some criticized Binance for enabling meme coin hype by listing tokens with little to no utility.
Meme Coins: From Hype to Hazard
Despite Zhao’s concerns, the meme coin market has reached an all-time high, boasting a combined market capitalization of approximately $110 billion, representing 3.44% of the global crypto market. Tokens like Peanut the Squirrel (PNUT) and Just a Chill Guy (CHILLGUY) have seen astronomical gains of 1,500% and 2,800%, respectively, according to CoinGecko data.
This explosive growth has fueled risky and often dangerous stunts by creators looking to push their low-cap altcoins into the spotlight. A stark example is the Solana-based meme coin launchpad Pump.fun, which recently disabled its live-streaming feature after a user staged a suicide attempt during a broadcast.
The Dark Side of Meme Coin Culture
Pump.fun has faced heavy criticism for fostering harmful publicity tactics. Earlier this year, a developer suffered third-degree burns after setting himself on fire during a livestream to promote his token. Other stunts, including staged kidnappings, fraudulent amputees, and explicit live shows, have raised ethical and safety concerns.
The Pump.fun team acknowledged the backlash, stating, “We acknowledge that recent events on our platform’s live streams have caused concern,” Pump.fun’ team said, and vowed to enhance content moderation. “Our platform has experienced unprecedented growth recently, with the daily number of live streams increasing by over 100x in under a week,” the team added.
Balancing Demand and Responsibility
While seasoned investors criticize platforms like Binance and Pump.fun for enabling risky investments, the demand for meme coins persists. Binance Futures, for instance, continues to list meme coin trading pairs, such as Why (WHY) and Cheems (CHEEMS), despite their prices plummeting shortly after listing.
A Call for Change
CZ Zhao’s criticism reflects a broader sentiment within the crypto community, advocating for a shift from speculative hype to meaningful innovation. While meme coins have their place, the need for real blockchain applications that deliver long-term value has never been more pressing.
As meme coin mania continues to dominate headlines, the industry must grapple with balancing public demand and ethical responsibility. Whether platforms like Binance and Pump.fun can adapt to this challenge remains to be seen.
