Crypto: CZ Criticizes Memecoins And Advocates For An Authentic Blockchain Revolution
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It’s official! Former Binance CEO Changpeng Zhao (CZ) has taken a stand against memecoins. He calls for a shift in priorities towards blockchain crypto projects that provide real added value.
Changpeng Zhao critiques memecoins and their impact on crypto
In a post published on November 26 on X (formerly Twitter), Changpeng Zhao expressed his discontent regarding the prominent place of memecoins in the crypto ecosystem. According to him, the energy devoted to these tokens should be redirected towards blockchain solutions that offer real utility.
Since 2021, certain memecoins have indeed seen explosive popularity. This surge has notably been driven by figures like Elon Musk. However, their lack of solid fundamentals makes them vulnerable to speculation and extreme fluctuations.
Good to know:
The memecoin ecosystem is worth about 110 billion dollars. This represents 3.44% of the total estimated crypto market of 3.19 trillion dollars.
According to CZ, this fascination with memecoins harms the evolution towards innovative blockchain applications. He also pointed out that many novice investors are attracted to these digital assets without understanding the risks. This undermines the overall credibility of the cryptocurrency sector.
Crypto exchange Binance faces criticism: contradictions regarding memecoins
The contradictions are glaring:
- On one hand, CZ calls to turn away from memecoins.
- On the other hand, Binance responds to public demand by continuing to promote them.
On November 25, for example, Binance Futures added Why (WHY) and Cheems (CHEEMS) to its platform. These tokens saw their price plummet within 24 hours after their introduction. This fuels criticism regarding the instability of memecoins!
Experienced crypto investors, for their part, hold Binance partially responsible for the losses suffered by newcomers in the world of cryptocurrency. Nevertheless, some argue that the demand for memecoins reflects a part of the market.
Thus, CZ’s call resonates as a warning for the crypto community. Something to ponder!
