Changpeng Zhao, the ex-big boss of Binance, is setting the record straight on memecoins and dropping some truth bombs about how Binance lists tokens.
CZ says “No” to memecoins
First off, CZ wants you to know he’s not a memecoin guy at all, despite their popularity. He claims he’s never bought one.
The rumors started swirling after a Binance tutorial featured the TST token. People thought CZ was secretly pulling the strings, but he hopped on X to shut that down.
He compared memecoins to fancy sports cars or expensive art, cool to look at, but not his thing.
While he’s not against them, he is focused on long-term fundamentals rather than market trends and hype.
The listing process is “a bit broken”
And here’s where it gets juicy, as CZ admitted that Binance’s token listing process has some major flaws.
Exchanges are in a mad dash to list hot tokens to get those sweet trading fees, as this is the main revenue source for them.
This leads to listings happening super fast, sometimes in just a few hours. CZ says this is a bit broken because prices explode on decentralized exchanges before regular people can even buy them on Binance or on another CEX. He’s basically telling investors to watch out for this pattern and stay sharp.
Why memecoins reign supreme?
So, why are memecoins so popular anyway? CZ thinks regulatory uncertainty plays a big role. Utility tokens, coins with a specific purpose often get hit with lawsuits, pushing projects to create memecoins instead.
Plus, let’s face it, speculators love volatility. Memecoins are super volatile, which means lots of trading action and liquidity, and sometimes, 10000x retturns for the lucky few, like in case of the lottery, and everyone likes dreaming.
CZ also gave a nod to their cultural impact, noting that memecoins often have passionate communities and provide entertainment.
Despite his reservations, Binance’s own reports show memecoins are exploding. Over 37 million have already launched, and projections estimate this number could exceed 100 million by the end of the year.
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