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

In a Nov. 26 X post, Zhao wrote that meme coins are becoming “a little weird” and urged developers to focus on creating “real applications” that provide practical utility rather than prioritizing hype-driven projects.

CZ’s comments have reignited the debate around the meme coin hype, drawing attention to their lack of real-world value. 

Meme coins largely rely on viral marketing and social media frenzy to generate short-lived investor interest. While they can deliver quick profits for some, they typically lack utility or tangible applications, leaving most holders with significant losses once the initial excitement fades.

CZ’s statement comes amidst the controversy around Solana-based meme coin deployer Pump.fun, where a livestream feature intended to boost engagement was exploited in disturbing ways, including threats of self-harm and inappropriate content.

One particularly troubling incident involved a user threatening to hang themselves if their token failed to reach a predetermined market cap. The situation escalated further when the individual later shared a video allegedly showing them acting on the threat. 

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

Such trends undermine trust in the broader cryptocurrency industry, diverting attention from projects with genuine utility and innovation and fuelling skepticism among potential adopters and regulators about the sector’s long-term viability.

Other prominent figures in the industry have also criticized meme coins for their lack of utility and meaningful contribution to the crypto ecosystem.  Ripple CEO Brad Garlinghouse has argued that tokens like Dogecoin fail to offer meaningful real-world applications. 

Similarly, Ethereum co-founder Vitalik Buterin criticized the trend of celebrity-endorsed meme coins earlier this year.

In a June X post, Buterin stressed that financialization is only justified if it brings value to society and cited sectors such as healthcare and open-source software as examples of areas where blockchain can provide societal benefits.

Utility-driven blockchain initiatives form the foundation of the industry’s long-term viability. 

Projects such as Axie Infinity, which enables players to earn income through gameplay, and AI-focused tokens like Fetch.ai, which powers autonomous machine-to-machine interactions, exemplify how blockchain technology can address real-world problems and revolutionize traditional industries.

According to CoinGecko data, the total market capitalization of meme coins has reached $120.27 billion, exceeding that of sectors like GameFi ($24.1 billion) and AI-focused tokens ($39 billion).

Ronaldo’s journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

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However, Ronaldo’s aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

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Bitcoin miner Marathon Digital (NASDAQ: MARA) buzz on Wall Street with 44% gains in the last week. Financial giant Cantor Fitzgerald raised the stock’s target price to $42, another 60% on expectations of outperforming MicroStrategy (MSTR) as well. MARA stock price surged to a six-month high on Monday amid the latest price target.

Why Is Marathon Digital (MARA) A Strong Bet

Cantor Fitzgerald has drawn attention to Marathon Digital Holdings (MARA) as a standout player in the Bitcoin ecosystem, reported Street Insider. The financial giant also emphasized its distinction from MicroStrategy (MSTR) due to its operational focus on Bitcoin mining. As of Monday’s closing, the MARA stock was trading at 26.42, with most of the gains coming over the past week.

MARA is currently the largest public-traded miner by the BTC hashrate, and produces nearly 25 Bitcoins every day. Unlike MSTR, which primarily invests in Bitcoin directly, MARA operates a mining business that generates Bitcoin at a discount to the spot price.

This approach, combined with its “HODL” strategy of retaining mined Bitcoin rather than selling, positions its operations as accretive on a Bitcoin-per-share basis, noted Cantor Fitzgerald.

The analysts at Cantor also said that MARA’s equity value currently trades at a ~152% premium over its Bitcoin holdings. On the other hand, MicroStrategy acquires Bitcoin at the spot market rate, but MARA has the leverage to mine Bitcoin at a ~40% discount to the spot price, which further strengthens its model.

Thus, Cantor Fitzgerald noted that as Marathon Digital reduces its reliance on third-party hosting firms, its cost of mining is likely to decline. This makes the business even more accretive in the long run. The Bitcoin miner purchased 5,771 BTC after raising $1 billion through a stock offering last week.

Our BTC Yield per Share remains robust at 35%. Excited to share @MARAHoldings has so far acquired 5,771 BTC using proceeds from 0% convertible debt at an avg price of $95,554 per BTC. This brings our total owned BTC to ~33,875 BTC, currently valued at $3.4B based on a spot BTC…

— Salman Khan (@theRealSalKhan) November 22, 2024

They further added that the Bitcoin miner’s operational efficiency, coupled with MARA’s strategic alignment, suggests the company could surpass MSTR in profitability metrics. As a result, Cantor Fitzgerald gave a target of $42 for the MARA stock.

What’s Next for MicroStrategy (MSTR)?

The world’s largest corporate Bitcoin holder Microstrategy (NASDAQ: MSTR) purchased additional 55,500 Bitcoins on Monday, for an investment value of a massive $5.4 billion. With this, it has taken its total Bitcoin holdings to 386,700 BTC.

However, amid the macro conditions and Donald Trump’s tariff raise, the MSTR stock closed 4.87% lower at $403 on Monday. Along with the US equity futures, the Bitcoin price crashed over 4% slipping under $94,000.

On the other hand, Bernstein analysts believe that there’s still steam left in the MSTR stock rally. As a result, they have given the MSTR stock price target of $600.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.