CZ: Meme Coins Fueled by Speculation, But Blockchain Fundamentals Hold

Former Binance CEO Changpeng Zhao (CZ) has opened up about his recent foray into meme coins, a space he previously avoided.

He also reflected on his missed opportunity with Ethereum and explained why the fundamentals of blockchain have remained the same despite shifting trends.

A Changing Perspective on Meme Coins

In an exclusive interview with Foresight News, the ex-crypto executive explained that he has taken a more active role on social media, especially when it comes to meme coins. Unlike previous market cycles where he distanced himself from the trend, CZ now engages with the community to understand its appeal.

Previously, he described such tokens as “extremely weird and desperate,” urging builders to concentrate on more useful applications instead. However, his turnaround became apparent when he allowed the community to create meme coins based on pictures he shared of his pet dog. Interestingly, despite being asked to, he has never endorsed any of the meme coins as the official one, claiming such a move would alienate others.

“There are quite a few users of the meme coins involved, and choosing one would definitely hurt the feelings of other users,” said Zhao.

The Binance co-founder compared today’s meme-driven market to crypto’s earlier phases, recalling how, in Bitcoin’s early days, launching a new chain meant “writing 20,000 lines of code.” However, the launch of the ERC-20 standard allowed anyone to create tokens with a smart contract and only required a website and a whitepaper. Now, it’s even simpler since just a meme image suffices.

Despite these shifts, CZ insisted that the core principles have remained the same:

“The core logic is that as long as someone recognizes a certain concept to issue coins and someone participates, it will have a price, and if no one participates, there will be no price,” he stated.

He believes meme coins have thrived because of frustration with traditional venture capital models and retail investors chasing life-changing gains. Additionally, such assets have escaped regulatory scrutiny, given they have “no practical use,” a somewhat ironic loophole fueling their rise.

Missed Opportunities and Post-Prison Mindset

In the interview, CZ also revealed he never put money into Ethereum, even though he had known its co-founder, Vitalik Buterin, since 2013. “I never invested,” said the 48-year-old, decrying the missed opportunity after ETH rose “thousands of times.”

On a more personal note, Zhao reflected on his four-month prison term after being found guilty of anti-money laundering violations. “ It was a very bad experience,” he admitted, though he stressed that the ordeal wasn’t physically brutal. For him, the uncertainty was the most challenging part, and the episode reshaped his priorities. He says he now puts his health and relationship first.

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