Former Binance chief executive Changpeng Zhao (CZ) denounced claims of purchasing meme coins.
Zhao conveyed his stance on the meme coin market, clarifying that he never bought any meme coins. Nonetheless, he cut a neutral position on the role of meme coins within the digital assets industry.
Changpeng remarks on Sunday, February 9, following news of Binance listing the TST token on the crypto exchange. The Binance co-founder clarified that the TST token was a test coin that quickly became a meme coin.
Zhao disassociated himself from Binance’s listing process. He reiterated that adding new tokens involves a competitive process for crypto exchanges.
CZ Clarity Elevates TST Meme Coin
Zhao dismissed endorsing TST, emphasizing that the token was mentioned initially in a video tutorial. Nonetheless, CZ notes that subsequent clarification posts about the TST token accelerated its visibility.
Zhao, the brains behind establishing the world’s largest crypto exchange, reaffirmed his devotion to building and prioritizing fundamentals across various crypto projects. He weighed into the ongoing speculation about personal ties with meme coins, indicating he had never bought any.
Changpeng assured his X, formerly Twitter, followers of his nonparticipation in the meme coin investments, though he avoided opposing them.
Earlier in November last year, Zhao urged the industry to prioritize the development of real blockchains. Although not opposed to meme coins, he considers the tokens to have a weird nature.
Zhao likens his firm stance to his declined interest in the sports vehicle, non-fungible tokens (NFTs), and art collections. However, this has not eroded his support for the broader digital assets industry.
Zhao’s statement earned support from the market education platform IncomeSharks, labeling meme coins departure from entertainment to bizarre and desperate nature. Market analyst Willy Woo echoed this sentiment, likening the present meme coin trend to the early utilization of blockchain in gambling cases.
Besides the clarity on meme coins, Zhao disclosed that he never purchased most altcoins as he primarily held Bitcoin and BNB. Nevertheless, Zhao assured us he would contribute to crypto development, including blockchain and altcoins initiatives.
Did Zhao Participate in Binance Listing?
Zhao waded into Binance’s decision to list TST, ruling out his input and unaware of the reasons considered. He added that the crypto exchanges are competitive and thus will list tokens with high trading demand.
Per Zhao’s account, projects naturally attracting strong trader interests erode the need to undertake direct outreach to prospective exchanges.
Zhao weighed into the broader digital assets trend, observing that traders questioned why certain tokens were listed over others. He urged the project teams to prioritize development and market traction rather than focus on listings.
Meme Coins Growing Interests
Zhao’s response explains potential factors fueling the popularity of meme coins. He indicated that the regulatory challenges confronting utility tokens drive more projects to embrace meme-based assets.
The former Binance executive observed that speculative trading has critical input, considering that assets with lower intrinsic value are vulnerable to volatility. Often, such attract heightened trading activity partly from the meme coins appeal to the communities via entertainment value and cultural engagement.
Zhao observed that substantial capital is actively within the market. He urged the builders to commit to developing products guided by the market demand while exercising caution against excessive risk.
The move by Zhao to clarify links with meme coins emerges from the volatility of meme coins, as evident in the Official Trump plunge from a peak of $73.43 on Jan 19. The TRUMP price has slumped 77.99% from its all-time high (ATH) price barely a month since its unveiling.
The 14.50% price decline in the past seven days leaves TRUMP underperforming the global crypto market, which has slid 4.70%. Further scrutiny shows the TRUMP meme coin is trailing the US-based cryptos that have also slid 2.50%, per CoinGecko data.