Changpeng “CZ” Zhao, the founder of Binance, has made headlines in the cryptocurrency world by declaring that the meme coin ecosystem is unsustainable. Zhao emphasized the need for blockchain technology to focus on real-world applications rather than speculative tokens. Following his remarks, popular meme coins like DOGE, SHIB, PEPE, and BONK experienced a decline in value ranging from 9% to 10%.
CZ’s Strong Criticism of Meme Coins
Binance CEO Changpeng Zhao criticized the recent popularity of meme coins, stating, “I am not against memes, but meme coins have become somewhat strange.” He urged the crypto community to think about functionality and sustainability in blockchain applications. This criticism comes after Binance recently launched futures products for meme coins WHY and CHEEMS, which lost value shortly after being listed.
The community has voiced concerns over Binance’s involvement in the meme coin trend, arguing that more functional projects should take precedence. Crypto analyst IncomeSharks supported Zhao’s viewpoint, stating that meme coins have shifted from being fun to excessively bizarre and desperate. Willy Woo remarked that the first blockchain application was Satoshi Dice, and now we have completed a full cycle with meme coins.
Market Decline and Intensifying Discussions
Following Zhao’s criticisms, a significant sell-off pressure emerged in the meme coin market. Leading assets like DOGE, PEPE, BONK, and FLOKI saw drops exceeding 10%. This downturn coincided with Bitcoin 
$92,513 prices falling below $94,000 and discussions surrounding Donald Trump’s economic policies. Additionally, rumors of Elon Musk shifting his focus from DOGE to PEPE intensified market volatility.
Binance’s listings of meme coins have split users’ opinions. Some accused the platform of succumbing to the hype surrounding these coins, while others expect the company to prioritize robust blockchain projects. Analyst Dan Crypto Larp expressed disappointment, stating, “Unfortunately, Binance prefers to list such assets over those with practical applications.”
The risky nature of meme coins, which promise high returns, highlights the need for new investors to exercise caution. Experts warn that this volatility could harm the sector in the long run. Within the crypto world, there is a consensus that a focus on real-world solutions through blockchain technology would be healthier for both investors and the industry.
