Former Binance CEO Changpeng Zhao (CZ) has recently opened up about his unexpected engagement with meme coins, a sector he once distanced himself from. In a candid discussion, he also touched upon his missed chance with Ethereum and offered insights on the enduring fundamentals of blockchain amidst the evolving landscape.
A Changing Perspective on Meme Coins
In an exclusive interview with Foresight News, the ex-crypto executive revealed that he has taken a more active role on social media concerning meme coins. Unlike previous market cycles, where he distanced himself from this trend, CZ’s current approach aims to engage with the community to grasp the appeal of these unconventional assets.
Historically, he described meme tokens as “extremely weird and desperate,” urging developers to focus on creating more practical applications. However, his perspective shifted when he allowed the community to launch meme coins inspired by images of his pet dog. Notably, despite numerous requests, he has refrained from endorsing any particular meme coin, stating that doing so would potentially alienate others in the community.
“There are quite a few users of the meme coins involved, and choosing one would definitely hurt the feelings of other users,” said Zhao.
The Binance co-founder likened today’s meme-driven market to the early phases of cryptocurrency, recalling that launching a new chain during Bitcoin’s infancy required extensive coding—often around 20,000 lines. The introduction of the ERC-20 standard revolutionized this process, allowing virtually anyone to create tokens with just a website and a whitepaper. Now, the creation of meme coins often boils down to simply having a meme image.
Despite the ease of creation, CZ firmly believes that the fundamental principles guiding these assets remain unchanged:
“The core logic is that as long as someone recognizes a certain concept to issue coins, and someone else participates, it will have a price. If no one participates, there will be no price,” he emphasized.
He attributed the thriving appeal of meme coins to discontent with traditional venture capital models, as retail investors eagerly chase life-altering profits. Interestingly, these assets have managed to evade significant regulatory scrutiny due to their perceived “lack of practical use,” creating a paradoxical loophole that fuels their popularity.
Missed Opportunities and Post-Prison Mindset
During the interview, CZ candidly admitted he never invested in Ethereum, despite having known its co-founder, Vitalik Buterin, since 2013. “I never invested,” he stated, lamenting the missed opportunity as ETH skyrocketed in value, rising “thousands of times” since its inception.
On a more personal note, Zhao reflected on his four-month prison term following a conviction for anti-money laundering violations. “It was a very bad experience,” he admitted, although he clarified that the experience was not physically harsh. For him, the uncertainty surrounding the ordeal proved to be the most challenging aspect, prompting a reevaluation of his priorities. He now emphasizes the importance of his health and relationships above all else.
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