Changpeng Zhao Slams Memcoins, Calls for Projects with Real Utility
Date: 2024-11-26 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
In a November 26 post on the X platform, Zhao noted that memecoins are “getting a little weird” and emphasized the importance of building applications with real value instead of projects based solely on hype. His statement has reignited the debate over memecoins, highlighting their lack of practical utility.
Memcoins typically rely on viral marketing and social media hype to attract short-term investors. Despite the potential for quick profits, such projects typically lack real utility and result in significant losses for most holders once interest wanes.
Zhao’s comments come amid controversy surrounding Solana-based memecoin platform Pump.fun. A new livestreaming feature launched to increase user engagement has been used to post disturbing content, including threats of self-harm.
One of the more shocking cases involved a user who said he would hang himself if his token did not reach a certain market value. The person later posted a video of himself carrying out his threat.
The problems surrounding memecoins extend beyond isolated incidents. According to research by CoinWire, memecoins promoted via social media, especially on the X platform, lose up to 90% of their value within three months.
Trends like these are eroding trust in the cryptocurrency industry as a whole, distracting attention from projects with real value and innovation. Moreover, it is fueling skepticism among potential users and regulators, calling into question the long-term sustainability of the cryptocurrency sector.
