Binance founder’s tweet sparks meme coin crash
- Changpeng Zhao (CZ) has criticized meme coins for lacking utility, urging focus on meaningful projects.
- Dogecoin, Shiba Inu, and others have seen steep price drops after CZ's remarks.
- The future of meme coins hinges on evolving beyond hype to deliver real value.
The meme coin market experienced a tremor following Binance founder Changpeng Zhao’s (CZ) public expression of concern regarding the current state of these tokens.
CZ’s tweet, characterizing the direction of meme coins as “weird,” appeared to spook investors, contributing to widespread declines in the sector.
While CZ later clarified that his intention wasn’t to pronounce the end of meme coins, his remarks reignited discussions about their underlying value and role within the broader cryptocurrency ecosystem.
A call for meaningful blockchain applications
Copy link to sectionCZ’s critique centered on the proliferation of “meaningless tokens,” urging developers to prioritize the creation of substantial blockchain applications over novelty coins.
Despite the often lighthearted nature of meme coins, he stressed the need for tokens with practical utility.
This sentiment resonated within the crypto community.
Binance Square content creator Ahmet echoed CZ’s view, pointing out that while celebrity endorsements, such as Elon Musk’s support of Dogecoin (DOGE), can generate hype, most meme coins lack intrinsic value.
Ahmet argued that without improvements in quality and community support, the majority of these tokens would remain, in his words, “garbage.”
Even Elon Musk is a supporter of meme coins. It is very difficult to end this craze, but we can continue to advocate for better quality meme coins and meme coins with a really high community, otherwise 98% of meme coins are garbage It’s happening.
CZ’s remarks align with similar views shared by Ethereum founder Vitalik Buterin, who earlier called for developers to innovate beyond simple meme coin templates.
Buterin suggested that these tokens could evolve to fund public goods and contribute positively to the blockchain space.
Meme coins led by Dogecoin nosedived on Changpeng Zhao’s remarks
Copy link to sectionThe reaction in the market was swift, with many leading meme coins experiencing notable declines.
Dogecoin (DOGE), the first and largest meme coin, saw its price drop by 6.6% in 24 hours to $0.375, with a weekly decline of 6.3%.
Shiba Inu (SHIB) has also lost 6.7% over the same period to trade at $0.00002384.
Pepe (PEPE) and Bonk (BONK), newer entrants to the meme coin space, faced even steeper losses.
PEPE dropped 8.6% in 24 hours, while BONK suffered a 6.3% daily dip and a staggering 24.2% weekly loss.
Other meme coins like dogwifhat (WIF), FLOKI, Popcat (POPCAT), and Brett (BRETT) similarly tumbled.
The future of meme coins
Copy link to sectionThe sharp declines highlight the volatility and speculative nature of meme coins.
While the sector has drawn criticism for its lack of utility, proponents argue that the strong communities behind these tokens can drive their evolution into meaningful projects.
As CZ and other industry leaders advocate for innovation, the future of meme coins may depend on whether developers heed the call to create projects that offer real value rather than relying solely on hype.
