Changpeng Zhao, known as CZ, is the co-founder and former CEO of Binance. He recently addressed rumors about his involvement with meme coins, stating he has never bought any. CZ understands the appeal of meme coins but focuses on long-term fundamentals instead of short-term trends.
The conversation started after the TST token gained attention due to a tutorial by Binance’s BNB team on launching meme coins. This led to speculation about CZ’s involvement, prompting him to clarify that he had no part in TST’s price changes. He took to X (formerly Twitter) to make his position clear.
CZ likened meme coins to luxury items like sports cars and art. He recognizes their existence but chooses not to invest in them. He is not against meme coins, but he wants to separate his views from Binance’s token listings. He explained that exchanges compete to list popular assets quickly, which can lead to rapid listings, sometimes within hours.
He also admitted that Binance’s listing process has issues. He described it as “a bit broken,” noting that the short notice of just four hours can cause token prices to spike on decentralized exchanges before traders can act on centralized exchanges. He advised investors to be aware of this trend.
When discussing why investors are drawn to meme coins over utility tokens, CZ pointed out regulatory uncertainty. Utility tokens often face lawsuits, pushing projects to consider meme coins instead.
Additionally, the volatility of meme coins attracts speculators, as it creates more trading activity and liquidity. CZ acknowledged the cultural significance of meme coins, highlighting their strong communities and entertainment value.
Despite his concerns about the hype surrounding meme coins, Binance’s latest market report shows a rapid increase in their popularity. Over 37 million meme coins have been launched, and projections suggest this number could surpass 100 million.
