Changpeng Zhao supports ‘real’ blockchain applications on memecoins

Binance's former CEO Changpeng “CZ” Zhao urged the crypto community to shift its focus from memecoins to building “real” blockchain applications.

In the year On November 26, CZ shared his disdain for the memecoin ecosystem. In X's post, Zhao stated that memecoins are getting “a little” weird as opposed to being ridiculous in their early stages.

CZ was ousted as Binance's CEO in November 2023 as part of a plea deal that imposed a $50 million fine and barred him from “now or in the future from participating in the management or administration of Binance.” Since then, the entrepreneur has focused on supporting grassroots development and education in Web 3.

A number of memecoins, including Dogecoin (DOGE) and Shiba Inu (SHIB), have maintained their momentum since 2021 with the support of Elon Musk and the broader crypto community.

Expectation rather than amplification

However, as market interests shifted to Bitcoin (BTC) and other value-adding projects, memecoins lost their appeal due to projects built solely on advertising.

While most of the CZ series supported his request to refocus on building true decentralized applications (DApps) instead of trying to monetize the ad, some accused former crypto exchange Binance of listing memecoins with no apparent utility.

Related: Pump. fun's memecoin freak show could lead to criminal charges: expert

Binance's crypto derivatives exchange, Binance Futures, continues to list memecoin trading pairs that meet public demand. However, the market value of Why (Why) and Cheems (CHEEMS) – two new memecoins that were listed on the platform on November 25 – were installed in one day.

Experienced investors hold Binance partially responsible for allowing exposure to volatile investments.

Memecoin projects on community radar

On the flip side, the market performance of memecoins is at an all-time high. According to Cointelegraph Markets Pro and CoinMarketCap data, the total market capitalization of the memecoin ecosystem is approximately $110 billion, which represents 3.44% of the $3.19 trillion crypto market.

On November 25, Pump.fun – a Solana-based decentralized platform for creating memecoins – faced heavy criticism after one of its users killed himself in a live broadcast.

While Pump.fun acknowledges the community's concerns, they maintain the platform's moderation efforts.

However, Pump.fun eventually removed the live streaming feature from its platform.

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