CZ Rejects Meme Coins and NFTs, Focusing on Fundamentals
The cryptocurrency industry is often driven by hype, speculation, and rapid trends, but Binance’s co-founder and former CEO, Changpeng Zhao—commonly known as CZ—has made it clear that he remains focused on core principles rather than the latest fads. On Sunday, he reiterated his stance, emphasizing that he has never engaged in buying meme coins or NFTs.
“I haven’t bought a single meme coin so far,” CZ shared via Twitter, underscoring that his portfolio remains limited to Bitcoin (BTC) and BNB (BNB). He further clarified, “I am not into sports cars; I don’t collect art; I haven’t bought any NFTs; I also haven’t bought most altcoins. But I am not against any of the above.” His comments reflect a disciplined investment strategy, driven by long-term value rather than short-term speculation.
Even though CZ has stepped back from his role in Binance’s daily operations, his words continue to hold considerable sway within the crypto community. His influence became evident once again when he addressed the Test (TST) token controversy, where a test meme coin used in a Binance tutorial video unexpectedly turned into a speculative sensation.
The Rise and Appeal of Meme Coins
Exploring the increasing fascination with meme coins, CZ suggested that regulatory pressures might have shaped their prominence. He explained that over the past four years, a “powerful regulatory agency” had aggressively pursued projects associated with utility tokens, falsely categorizing them as securities. In response, many projects may have shifted towards meme coins as a safer alternative.
Although he did not explicitly name the regulatory body, CZ’s remarks come against the backdrop of repeated actions by the U.S. Securities and Exchange Commission (SEC), which, under former chair Gary Gensler, maintained a strict stance on crypto assets. The SEC’s scrutiny was particularly notable during the Biden administration, which led CZ to deal with legal challenges of his own—including a lawsuit against Binance for alleged securities violations. His eventual departure from Binance came as part of a multi-billion-dollar settlement with the U.S. Department of Justice.
As the regulatory landscape evolves, especially with the recent return of Donald Trump’s administration, there is newfound optimism for a friendlier approach to cryptocurrencies. If this shift materializes, utility tokens may regain momentum, posing competition to meme coins that have largely thrived in response to the uncertain regulatory framework.
Beyond regulation, CZ pointed out a fundamental reason behind the speculation surrounding meme coins—human nature. The crypto industry, like traditional markets, gravitates towards speculation. Meme coins fit this mold perfectly because they lack a set intrinsic value, making them an ideal playground for traders looking to chase rapid gains.
“Things with clear tangible value are harder to speculate on,” he observed, noting that stable assets with predictable prices rarely attract the same frenzied trading activity as high-risk, high-reward meme coins. This perspective aligns with his previous comments regarding the extreme lengths to which meme coin promoters go to drive interest. In November, he called out some of the bizarre promotional tactics in the space, commenting that things had become “a little weird.” This remark followed a particularly disturbing live-stream stunt on Solana-based Pump.fun, where a token creator pretended to hang himself to boost token sales.
The TST Token Controversy
The recent TST token incident perfectly encapsulates the unpredictable nature of the meme coin market. What started as a simple test token for a BNB Chain tutorial suddenly morphed into a speculative frenzy. Originally created to demonstrate how to launch a meme coin on the Four.Meme platform, TST appeared briefly at the 1:18 mark in the tutorial video. This fleeting moment was all it took for speculation to ignite.
Despite efforts to remove the video, the damage was already done. Crypto influencers, particularly within the Chinese market, seized on the token, rapidly inflating its value to a staggering $500 million market cap before it inevitably crashed. Even after repeated clarifications from CZ that neither he nor Binance had any involvement in TST beyond the tutorial, traders continued to pour in, showcasing the power of viral hype in crypto markets.
“This is NOT an official token by the BNB Chain team, or anyone,” CZ firmly stated. “It is a test token used just for that video tutorial. Nothing more.” Yet, the speculative appetite of the market had already taken hold, turning an educational resource into an unintended altcoin phenomenon.
Concerns Over Binance’s Listing Process
Amid the chaos surrounding TST, CZ took the opportunity to voice concerns about Binance’s current listing procedure. He pointed out that the exchange’s four-hour gap between announcement and listing creates an environment where traders can exploit early price movements.
“As an observer, I think the Binance listing process is a bit broken,” he tweeted. “They announce, then list four hours later.” He elaborated on the problem, explaining that this waiting period leads to price surges on decentralized exchanges (DEXs), allowing early buyers to cash out on centralized exchanges (CEXs) as soon as trading officially begins.
His candid remarks acknowledged the necessity of providing a notice period before a token listing but highlighted the downside—manipulated prices and speculative trading spirals. “Not sure if there is a solution for this though. Just beware,” he cautioned.
Sticking to Fundamentals
Despite the ongoing craze for meme coins and speculative assets, CZ remains steadfast in his belief that long-term success in crypto hinges on fundamentals. “There is lots of money ready to invest in the market… Lots of opportunities,” he noted. However, he emphasized a crucial principle for builders and investors alike: “You need to build things people want.”
His words serve as a reminder that while speculation may drive short-term profitability, sustainable projects with real utility will ultimately shape the future of crypto. Even as the industry evolves, CZ’s philosophy stands as a guiding principle—urging participants to look beyond the hype and focus on meaningful contributions to the ecosystem.
