Binance’s former CEO CZ denies buying meme coins

Changpeng Zhao (CZ): His Stance on Meme Coins

Changpeng Zhao (CZ), co-founder and former CEO of Binance, has recently addressed rumors about his involvement in the meme coin market. He has stated that he has never purchased any meme coins himself.

CZ acknowledges the appeal of meme coins but emphasizes his focus on long-term fundamentals rather than short-term trends. The recent attention given to the TST token, following a tutorial by Binance's BNB team on launching meme coins, sparked speculation about CZ's involvement. However, he has clarified that he was not involved in TST's price fluctuations.

CZ likens meme coins to luxury items such as sports cars or art. While he recognizes their existence, he chooses not to invest in them due to his focus on long-term fundamentals.

He does not hold a negative view of meme coins but is keen to separate his personal opinions from Binance's listings of these assets. CZ highlights that exchanges compete to list popular assets quickly, leading to rapid listings, which can occur within hours.

He admits that Binance's listing process has some issues, describing it as "a bit broken." The short notice period of just four hours can cause token prices to surge on decentralized exchanges before traders can respond on centralized exchanges.

When asked why investors are drawn to meme coins over utility tokens, CZ points to regulatory uncertainty. Utility tokens often face legal challenges, encouraging projects to consider meme coins instead. Additionally, the volatility of meme coins attracts speculators due to the increased trading activity and liquidity.

Despite CZ's 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 that this number could surpass 100 million.