Binance founder Changpeng Zhao (CZ) has expressed concern over the proliferation of meme coins. CZ called for a new focus on developing practical blockchain applications. His comments come amid dramatic price swings in tokens like PNUT (Peanut the Squirrel).
In an X post, CZ stated that he was not against memes. But he added that meme coins are getting ‘a little’ weird now. “Let’s build real applications using blockchain,” he stated. His remarks appear to be prompted by the increasing misuse of platforms like Pump.fun and the extreme volatility witnessed in tokens like PNUT.
The Solana-based Peanut the Squirrel (PNUT) token showcases this volatility. PNUT has come a long way from its all-time low of $0.03128 on November 5 to reaching an all-time high of $2.47 on November 14. This represents a price surge of over 3,415.97%. However, the token has since faced major selling pressure, dropping 55.45% from its peak.
The discussion gained additional traction when an X user defended meme coins. The user cited Elon Musk’s support and suggested the need for “better quality meme coins” while acknowledging that “98% of meme coins are garbage.”
Brazil’s Congress Eyes BTC to Diversify National ReservesCZ responded diplomatically and clarified his statement: “Not trying to end anything, everyone has their choose on what to invest or hold. Just encouraging more builders.”
PNUT was trading at $1.11 at press time, with its current market cap standing above the $1.1 billion mark. The overall meme coin segment is not trading at its best shape now. At press time, the meme coin market cap was up by just 1.8%. The price of Dogwifhat has dropped by 2% while Notcoin is down by 1.8%.
CZ’s stance reflects growing concerns among industry leaders about the potential distraction meme coins pose to legitimate blockchain development. By encouraging developers to focus on building practical applications, he emphasizes the importance of creating sustainable value.
