Binance co-founder and former CEO, Zhao Changpeng, better known as CZ, took to his social media platform and raised his concerns about the emergence of memecoins and their popularity. “I am not against memes, but meme coins are getting “a little” weird now. Let’s build real applications using blockchain.” CZ said. This comment came in right after Binance launched BNBChain memecoin futures, which saw a sharp price declines soon after their debut.
Binance’s CZ Frustration with Memecoins
CZ’s comment indicates his frustration with the memecoins, something that is a speculative asset but continues to dominate the headlines. Memecoins, once were seen as fun side projects but now evolved into market movers with volatile behavior. From CZ’s statement, he is pointing out the fact that these coins create a hype but lack utility, which diverts attention from the greater potential of the blockchain technology.
Binance’s recent futures launch for two new memecoins further highlighted the speculative nature of memecoins. Despite the initial excitement, the price drop creates doubts about their long-term value.
Recent Controversies Add Fuel to the Debate
With the recent rug pull involving the Quant token, the investors suffered a significant loss after the developers abandoned the project.
Also, the $JUSTICE token created by the Peanut the Squirrel’s owner, Mark Longo, created to honor his deceased pet Peanut the Squirrel and Fred the racoon as they were wrongfully euthanized by the government.
Longo criticized the the PNUT community to be monetizing on his loss. Longo, recently has also been accused of controlling 80% of the tokens by an internal team.
This entire story became another example of how these unregulated memecoins can spiral out of control and indicates broader concerns about the market’s direction.
The Binance former CEO emphasized the need for practical blockchain applications, urging developers to focus on solutions that can transform industries rather than fueling speculative bubbles. Blockchain, according to him, should not be used to for short-term profits but also for creating sustainable and impactful solutions to various industries.
Also Read: Mark Longo Launches $JUSTICE to Address $PNUT; CT Raises Centralization Issues
Source: https://www.cryptonewsz.com/binance-cz-memecoin-overshadow-real-innovation/