Memecoins have been the main story of this cycle, generating millions of dollars in revenue for platforms like Pump.fun and generating massive profits for crypto investors. However, many consider that the frenzy around these tokens took a worrying turn as the cycle progressed, with figures like Changpeng Zhao calling for projects with “real” utility.
CZ calls for more real-world blockchain applications
On Tuesday, Binance co-founder and former CEO Changpeng “CZ” Zhao shared his thoughts on the recent evolution of memecoins, stating that they are “getting a little weird now” in an X post.
CZ clarified that he was not against the sector but asked the community to focus on creating “real applications using blockchain”. He further explained that he was not trying to “end” the memecoin craze, but to encourage more community builders and utility projects.
His statement sparked a debate among crypto investors, who shared mixed opinions on this issue. Some users agreed, calling memecoins a “distraction,” while others disagreed with CZ’s comments, saying the current frenzy was the fault of utility developers.
One community member argued that “the only fun thing about utility tokens is the fact that they have a utility”, adding that “reading thousands of pages in the name of a white paper, which they end up not providing 10%” is what drove investors to coins.
Meanwhile, others have suggested that memes are important because they have the “unique power to connect with people” and could “pave the way for innovative fundraising and economic applications in the future” .
Some have debated that investors, and even Binance, should focus on memecoins with strong communities and projects behind them, an argument already made by the community.
It is worth noting that the global crypto exchange founded by CZ has been heavily criticized for its recent listing of memecoins. 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 cryptocurrencies based on memes.
These tokens saw a significant price rise after being added to the exchange, but saw massive declines once the initial frenzy ended. Users have questioned Binance’s listing practices, suggesting they could create an unfair and harmful environment for investors. Co-founder of Bitcoin explorer Ordinals Ord.io, Leonidas, spoke out 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, as they are the ones who are able to pay the largest percentage of the supply in fees listing which Binance then “abandons”. to generate income.
“Bizarre” development of Memecoins
CZ’s comments appear inspired by the recent Pump.fun livestream controversy, where hundreds of users abused the platform’s livestream functionality to promote their tokens. As reported by Bitcoinist, the Solana-based memecoin launchpad came under fire on Monday after many users started a worrying “trend” promoting their tokens.
Online reports showed that memecoin creators threatened to commit violent and harmful acts, such as child and animal abuse, or harm their families, on Livestream if their tokens did not perform.
As a result, the crypto community has urged the platform to shut down the live streaming feature and be more transparent with users about their guidelines. On Monday, Pump.fun responded to community concerns by announcing a temporary halt to livestreams on the platform.
The measure was taken to “ensure the absolute safety” of users and will be maintained “until the moderation infrastructure is ready to cope with the increased activity levels.” Ultimately, the Pump team promised more transparency on rules and regulations.
