Binance's CZ Denies Meme Coin Purchases, Admits Listing Process Flaws

Binance's CZ Denies Buying Meme Coins, Calls Listing Process "Broken"

Changpeng Zhao (CZ), the co-founder and former CEO of Binance, has clarified his stance on meme coins, stating that he has never purchased any. While acknowledging their popularity in the crypto space, CZ emphasized his focus on long-term fundamentals rather than market trends.

The discussion around CZ's involvement with meme coins was sparked by a controversy surrounding the TST token. The token gained traction after being featured in a now-deleted tutorial by Binance's BNB team on launching meme coins via the Four.Meme platform. Some speculators suggested that CZ was involved, prompting him to clarify his position on X (formerly Twitter). He reaffirmed that he had no role in TST's price movement.

CZ compared meme coins to items like sports cars, art, and NFTs—things he acknowledges but does not invest in. He stressed that while he doesn't personally buy meme coins, he is not against them. He also distanced himself from Binance's token listings, explaining that exchanges compete to list popular assets with high trading volumes, leading to rapid listings often within hours.

At the same time, CZ admitted that Binance's listing process has flaws. He described it as "a bit broken," noting that the short notice period—just four hours—causes token prices to spike on decentralized exchanges (DEXs) before traders can take advantage on centralized exchanges (CEXs). He urged investors to stay aware of this pattern.

When discussing why investors prefer meme coins over utility tokens, CZ pointed to regulatory uncertainty. He noted that utility tokens are often targets for lawsuits, which has driven many projects toward meme-based alternatives. Additionally, speculators are drawn to assets with high volatility, as they generate more trading activity and liquidity. He also acknowledged meme coins' cultural impact, recognizing their strong communities and entertainment value.

CZ has previously commented on the meme coin trend, cautioning against excessive hype. Despite his concerns, Binance's latest market report highlights the rapid rise of meme coins, revealing that more than 37 million have already been launched. Projections suggest this number could exceed 100 million by the end of the year.