Binance Cofounder and Ex CEO Changpeng Zhao clarified his position on the place of memecoins in the crypto industry while knocking centralized exchanges for the lag in their token listing process.
As he is fondly called, CZ shared his opinion on the above issues on his X page, sparking a flurry of interactions from his X community.
The Billionaire founder was reacting to comments on the “TST” memecoin launched by the Binance Ecosystem. The meme coin launch was a surprise, given Changpeng Zhao’s earlier position on meme coins and how the industry should focus more on utility tokens.
In his X post, CZ stated that Binance and Binance did not endorse the “TST” memecoin. He explained that the memecoin was used as a test for a video tutorial.
Mr. Zhao seized the opportunity to clarify his position on memecoins in the industry and what he thinks about the category compared to utility tokens.
Not “into” something doesn’t mean I am against it. I am not into sports cars; I don’t collect art; I haven’t bought any NFTs; I also haven’t bought most altcoins (I hold BTC and BNB). But I am not against any of the above. And I think most of you’d agree that I have worked hard and “gone to some lengths” to help many altcoins and the crypto industry in general. I adopt the same view towards meme coins.
CZ revealed that he hadn’t bought a single memecoin and only holds BTC and BNB. He explained that people would always opt for more speculative assets as they present great opportunities for trading. Utility tokens, on the other hand, have a near-fixed value and don’t have much room for speculation.
He admitted that memecoins are fun and have a cult-like following in the crypto industry. Hence, he is not ready to go against the community.
Centralized Exchanges Flawed Listing Process
Away from the debate on Memecoins, CZ argued that CEXs could borrow a cue from DEXs in areas of token listing.
The Billionaire founder stated that DEXs, who list everything automatically, exploit the time lag between when CEXs announce a token listing and when they actually list the token.
“ I think the Binance listing process is a bit broken. They announce, then list 4 hours later. The notice period is necessary, but in those 4 hours, the token prices go high on DEXes, and then people sell on CEX… Not sure if there is a solution for this though. Just beware.” CZ stated
He postulated that a viable solution would be CEXs listing everything automatically without the time lag between announcement and actual listing.
Changpeng Zhao was released from prison late last year after a four-month sentence following conviction by the US justice system. CZ was convicted for aiding money laundering and facilitating transactions for sanctioned entities with Binance.
He stepped down from his role as CEO and paid a personal fine of $50 million. Binance Limited was fined $4.3 billion for the offense.
