Statement From Binance Founder CZ After Criticism For TST Memecoini, Which Raised A Lot Of Heat

Binance founder Changpeng Zhao (CZ) has responded to criticism following the listing of TST, a token that started as a test coin but later turned into a memecoin, on Binance.

CZ Claims He Had Nothing To Do With TST

Addressing speculation that he was involved in the token’s launch, CZ clarified that TST was never backed by him or Binance.

CZ explained in his statement that TST was initially created for a video tutorial and had no official support. However, attempts to clarify the situation have further increased interest in the token:

“I shared it to clarify that TST is not sponsored by me or Binance. It was just a test token used in an educational video. But every explanation post somehow made it more viral.”

CZ responded to questions about whether he was shifting his focus from established projects to memecoins. He explained that he was committed to developing the industry and that he was not personally invested in any memecoins:

“I haven’t bought a single memecoin yet but that doesn’t mean I’m against them. I’m also not interested in sports cars, NFTs or most altcoins except BTC and BNB but I’m not against any of them.”

Responding to concerns about Binance listing TST, CZ stated that the exchange had nothing to do with the listing process, explaining that cryptocurrency exchanges compete to list popular tokens with strong trading volumes.

“People always ask why Binance lists certain coins but not others. The truth is, if a coin is in high demand, exchanges move quickly to list it. What is my advice? Focus on building your project, not getting listed,” he said.

CZ also speculated on why memecoins are gaining power over utility tokens:

Regulatory Pressure: He suggested that increased regulatory scrutiny on utility tokens is pushing projects to launch memecoins instead.

Speculative Trading: It is harder to speculate on assets that have a clear intrinsic value, whereas memecoins thrive on volatility.

Cultural Appeal: The fun and community-oriented nature of memecoins makes them attractive to investors.

Finally, CZ acknowledged potential flaws in Binance’s listing process, pointing out that prices often rise on decentralized exchanges (DEXs) before a token is officially listed on Binance:

“They make a listing announcement and four hours later the listing happens. During that time the token prices go up on DEXs and then people sell on centralized exchanges. I’m not sure if there’s a solution to this, but it’s something to be aware of.”

*This is not investment advice.