Binance founder Changpeng Zhao notes weird memecoin mania, urges utility innovation
Binance founder Changpeng Zhao has shared concerns over the growing hype surrounding memecoins while urging to develop more utility-driven tokens.
In a Nov. 26 post on X (formerly Twitter), Zhao acknowledged the popularity of memes but expressed unease over their current direction, describing them as a little weird.
According to him, most memecoins lack real-world value and rely heavily on hype and social media trends to attract investors. Instead, he encouraged developers to shift their focus toward creating blockchain applications with tangible utility rather than riding short-lived trends.
Zhao stated:
I am not against memes, but meme coins are getting a little weird now. Lets build real applications using blockchain.
Meanwhile, one community member pointed out that figures like Elon Musk have endorsed certain memecoins, making it challenging to curb their popularity. However, Zhao clarified that his intention is not to eliminate memecoins but to inspire more developers to focus on creating products with practical applications.
Despite Zhaos appeal, the crypto community remains divided. While some agree with his call for utility-driven innovation, others defend memecoins as a unique aspect of the crypto ecosystem that could enable retail adoption.
Zhaos comments appeared to have been influenced by the rising controversies linked to memecoin launches. Recently, the Solana-based memecoin deployer Pump.fun faced backlash after some issuers used its platform to share harmful content, including threats tied to token price targets.
Memecoins growth
The memecoin sector remains one of the fastest-growing areas in crypto despite its volatility and association with scams.
Retail investors are drawn by the potential for massive returns, often overlooking the risks. This enthusiasm has propelled memecoins into the spotlight during the current bull market cycle.
Last week, DWF Labs launched a $20 million fund dedicated to memecoin investments, signaling growing institutional interest in the sector.
According to CryptoSlates data, the market cap of memecoins has more than doubled to a peak of $120 billion since Donald Trumps US presidential election victory, reflecting their surging popularity.
Meanwhile, crypto analysts like Alex Obchakevich predict that the sector could reach $200 billion, driven by increased market liquidity and bullish market sentiment.
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Text source: CryptoSlate
