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).

Donald Trump, President-elect of the United States, revealed holds $7.2 million in many cryptocurrencies. This is another proof that he is a pro-crypto.

According to data from Arkham Intelligence, on Nov. 25, the 47th President of the United States owned digital assets in cryptocurrencies worth about $7.2 million. He held $26 million in cryptocurrency on Jun. 6, but dropped just a few days after to $17 million.

His most significant hold on crypto is meme coin Trog (TROG), with 210 billion coins equal to $1.86 million. At the time of writing, TROG prices surged 343% from $0.000002008 to $0.000008914 in the past 24 hours.

The most exciting part is that he holds TROG bigger than Ethereum (ETH), with $1.7 million, and the average price of Ethereum is $3,401. WETH (WETH) became the third largest crypto held, with 478 WETH, which is equal to $1.63 million.

Another million holds on crypto is themed-coin of his name, TRUMP with 579k or equals to $1.03 million. He mostly holds meme coins, including GUA, TUA, PUPPIES, and CZAR. Among those on the top list, Bitcoin (BTC) was not on the list as the biggest crypto that he holds.

Trump’s movement on crypto

Although he was ever known as anti-crypto back then in 2021, when he was not re-elected as U.S. President, now he is one of the most significant figures in the crypto industry.

When entering this year’s election, he eventually became pro-crypto as he attended the Bitcoin Conference 2024 in Nashville. He shares the pro-crypto program if re-elected, which includes Bitcoin Strategic Reserve and is supported by numerous Republican senators to propose the idea to Congress.

Now, he has been re-elected to the White House and chosen several names for his cabinet, some of which are identified as pro-crypto, including Robert F. Kennedy Jr and Elon Musk. Trump also chose Scott Bessent as the Secretary of Treasury, who he called as the “most pro-crypto treasury we’ve ever seen,”.