#cryptonews
CZ expressed in an X post that meme coins are becoming “a little weird” and emphasized the need for “real applications” that provide value.
This commentary has revived discussions about the practicality of meme coins, which often lack tangible utility. Research from CoinWire shows that many meme coins lose over 90% of their value within three months of launch, leaving most investors at a loss.
Ripple CEO Brad Garlinghouse has also weighed in, arguing that tokens like Dogecoin lack significant contributions to the crypto ecosystem.
The challenges associated with meme coins were recently highlighted by controversies surrounding Pump.fun, a Solana-based project. A feature meant to encourage user interaction was exploited in disturbing ways, including a user threatening self-harm to manipulate the token’s market cap.
Despite their popularity, CZ’s concerns reflect the risks these tokens pose to the crypto ecosystem, where trust and credibility are vital for long-term growth.
Solana recorded $5.9 million in revenue, marking a new all-time high, showcasing how hype-driven trends can sometimes bring short-term benefits to the crypto ecosystem.
The rise of meme coins underscores the importance of responsible innovation within the blockchain space. Although such tokens might attract new investors, their lack of practical applications risks undermining the credibility of the crypto ecosystem.