Binance Founder Changpeng Zhao Says Meme Coins Are Getting ‘A Little Weird’ – But Dogecoin and Shiba Inu Aren’t the Culprits

Binance founder and former CEO Zhao Changpeng On Tuesday, he expressed his concerns about the current situation condition of parts samecalling their proliferation “a little weird.”

What happened: In a tweet, Zhao clarified that he was not against memes, but urged the crypto community to focus on creating meaningful blockchain applications.

“Let’s build real applications using blockchain,” he said. wrote.

Zhao’s remarks come amid growing scrutiny of platforms like Pump.fun, which have simplified the process of create and launch meme coins.

These platforms allow anyone to create tokens in minutes without requiring identity verification, making them a hotbed for scams and exploitation.

Although designed to attract attention through features like live token launches, these tools have reportedly devolved into disturbing displays of violence, fraud, and even animal abuse.

With little to no accountability, these platforms have created fertile ground for exploitation, leaving unsuspecting retail investors at the mercy of bad actors.

A recent report from CoinWire shed more light on risks associated with parts themselves.

Analysis of more than 1,500 meme pieces promoted by 377 influencers on X (formerly Twitter), the study found that 76% of these tokens eventually become “dead,” meaning they lose 90% or more of their value within three months of promotion.

Although coins established as Dogecoin DOGE/USD And Shiba Inu DOGE/USD have maintained their liquidity and relevance in the market, the majority of even promoted coins fail to replicate this success.

Read also: WisdomTree Files for XRP ETF Trust: Report

Only 3% of tokens managed to deliver the coveted 10x returns often promised by influencers, with the biggest influencers faring even worse: the tokens they promoted generated an average negative return of 89% in three month.

Zhao’s comments align with growing pressure within the crypto community for more responsible behavior from platforms and influencers.

Eric ChenCEO and co-founder of Injection laboratoriesnoted that influencers in the crypto space cover a wide range of strategies, from promoting speculative tokens to offering more qualitative information.

“While some influencers undoubtedly engage in questionable promotions, it is important not to generalize their actions to the entire community,” Chen told Benzinga.

He emphasized that token performance depends on several factors, including general market sentiment, whale activity and retail investor participation.

However, Chen cautioned that influencers wield significant power over market trends and must act responsibly.

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