After Binance’s founder Changpeng Zhao (CZ), publicly expressed his concern about the state of meme coins, there was a shake in the market.
CZ’s tweet characterizing the meme coin’s direction as “weird” appeared to scare investors and contributed to widespread losses in the industry.
CZ clarified later that his intent was not to declare the end of the meme coin, but his comments reignited the discussion about the value underlying the coins and their role in the wider cryptocurrency ecosystem.
Call for blockchain applications that are meaningful
CZ’s criticism centered around the proliferation of “meaningless tokens,” and urged developers to prioritise the creation of blockchain applications that are substantial over novelty coins.
He stressed that tokens should have a practical purpose, even though meme coins are often humorous.
The crypto community echoed this sentiment.
Binance Square’s Ahmet, who is a content creator, shared CZ’s opinion, noting that celebrity endorsements such as Elon Musk supporting Dogecoin can create hype but most meme currencies lack intrinsic value.
Ahmet said that if there were no improvements to the quality of the tokens and community support they would be, as he put it, “garbage.”
Retweeting @cz_binance
Elon Musk supports meme coins. We can’t stop this trend, but it is possible to continue advocating for higher quality memes and those with an extremely high level of community. Otherwise, 98% are junk.
CZ’s comments are similar to those made by Ethereum co-founder Vitalik Buterin who called on developers to go beyond meme coin templates.
Buterin said that the tokens would be able to finance public goods, and make a positive contribution to blockchain.
Dogecoin and other meme coins have plummeted in value after Changpeng Zhao made his remarks
Many of the top meme coins experienced a significant decline.
Dogecoin, the largest and first meme coin, has seen its price fall by 6.6% within 24 hours, to $0.375. The weekly drop is 6.3%.
Shiba Inu has lost 6.7% in the same time period, trading at $0.00002384.
Pepe (PEPE), and Bonk, newer players in the meme coin market, suffered even greater losses.
PEPE fell 8.6% within 24 hours. BONK, on the other hand, suffered daily losses of 6.3% and weekly losses that reached staggering levels of 24.2%.
Other memes like Dogwifhat, FLOKI Popcat Popcat and Brett Brett also tumbled.
Future of meme Coins
These sharp drops highlight the volatile and speculative nature meme coins.
The sector is often criticized for the lack of utility. However, supporters argue that strong communities can help these tokens evolve into valuable projects.
CZ, along with other leaders in the industry, are promoting innovation. The future of meme coin may be determined by whether or not developers create projects which offer true value and do not rely solely on hype.
The post Binance’s founder tweets about meme coin crashes may change as new information becomes available.
