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Former Binance CEO Changpeng 'Cz' Zhao criticized the growing meme coin trend, suggesting that blockchain developers should focus on utility-driven projects.
On November 26X <a target="_blank" href="https://x.com/cz_binance/status/1861306581758976434″ target=”_blank” rel=”nofollow”>mailZhao wrote that meme coins are getting “a little weird” and urged developers to focus on creating “real apps” that provide practical utility rather than prioritizing hype-driven projects.
CZ's comments have reignited the debate around the hype of meme coins, drawing attention to their lack of value in the real world.
Meme coins rely heavily on viral marketing and social media frenzy to generate short-lived investor interest. While they can generate quick profits for some, they generally lack utility or tangible applications, leaving most holders with significant losses once the initial enthusiasm fades.
CZ's statement comes amid controversy surrounding Solana-based meme coin implementer Pump.fun, where a livestream feature intended to boost engagement was exploited in disturbing ways, including threats of self-harm and inappropriate content.
One particularly concerning incident involved a user who threatened to hang himself if his token did not reach a predetermined market capitalization. The situation escalated further when the individual later shared a video that allegedly showed them acting on the threat.
Concerns about meme coins go beyond their misuse on specific platforms. A CoinWire study reported that meme coins promoted through social media, particularly on x, tend to lose 90% or more of their value within three months.
These trends undermine confidence in the broader cryptocurrency industry, diverting attention from projects with genuine utility and innovation and fueling skepticism among potential adopters and regulators about the long-term viability of the sector.
Other prominent industry figures have also criticized meme coins for their lack of usefulness and significant contribution to the crypto ecosystem. Ripple CEO Brad Garlinghouse has argued that tokens like Dogecoin do not offer meaningful real-world applications.
Similarly, ethereum co-founder Vitalik Buterin criticized the trend of celebrity-backed meme coins earlier this year.
In a June <a target="_blank" href="https://x.com/VitalikButerin/status/1798290424622113230″ target=”_blank” rel=”nofollow”>mailButerin emphasized that financialization is only justified if it brings value to society and cited sectors such as healthcare and open source software as examples of areas where blockchain can provide social benefits.
Utility-driven blockchain initiatives form the foundation of the industry's long-term viability.
Projects like Axie Infinity, which allows players to earn income through gameplay, and ai-focused tokens like Fetch.ai, which powers autonomous interactions between machines, exemplify how blockchain technology can address real-world problems and revolutionize traditional industries. .
According to data from CoinGecko, the total market capitalization of meme coins has reached $120.27 billion, surpassing that of sectors such as GameFi ($24.1 billion) and ai-focused tokens ($39 billion).
