Changpeng Zhao critiques meme coins, suggests projects should focus on utility

Former Binance CEO Changpeng ‘Cz’ Zhao criticized the growing trend of meme coins, suggesting that blockchain developers should focus on utility-oriented projects.

In a post dated November 26, Zhao wrote that meme coins have become “a bit weird” and urged developers to focus on creating “real applications” that provide practical benefit rather than prioritizing extravagant projects.

CZ’s comments reignited the debate around meme money ads and highlighted their lack of real-world value.

Meme coins rely heavily on viral marketing and social media frenzy to generate short-lived investor interest. While they can provide quick profits for some, they often lack benefits or tangible applications, leaving most owners facing significant losses after the initial excitement wears off.

CZ’s statement comes amid controversy over Solana-based meme coin distributor Pump.fun, where a livestream feature intended to increase engagement has been used in disturbing ways, including threats of self-harm and inappropriate content.

One particularly disturbing incident involved a user threatening to hang himself if his token did not reach a predetermined market value. The situation escalated further when the person later shared a video that allegedly showed him acting out of threats.

Concerns about meme coins go beyond their misuse on specific platforms. A CoinWire study reported that meme coins promoted through social media, especially in X, tend to lose 90% or more of their value within three months.

Such trends undermine confidence in the broader cryptocurrency industry, divert attention from projects with real utility and innovation, and raise doubts among potential adopters and regulators about the long-term viability of the sector.

Other prominent figures in the industry have also criticized meme coins for not providing benefits and not contributing meaningfully to the crypto ecosystem. Ripple CEO Brad Garlinghouse argued that tokens like Dogecoin fail to offer real-world applications.

Similarly, Ethereum co-founder Vitalik Buterin criticized the celebrity-backed meme coin trend earlier this year.

Buterin emphasized in a post in June

Service-oriented blockchain initiatives lay the foundation for the industry’s long-term sustainability.

Projects like Axie Infinity, which allows players to earn income through gaming, and AI-driven tokens like Fetch.ai, which power autonomous machine-to-machine interactions, exemplify how blockchain technology can solve real-world problems and revolutionize traditional industries.

According to CoinGecko data, the total market value of meme coins reached $120.27 billion, leaving behind sectors such as GameFi ($24.1 billion) and artificial intelligence-focused tokens ($39 billion).