Meme coins are growing in popularity. But they also face more scrutiny than ever before. At Aus Crypto Con 2024, Binance CMO Rachel Conlan spoke about how the exchange decides which meme coins to choose. Conlan mentioned that community input is important. However, she explained that Binance prioritizes benefit-oriented projects, especially in the memecoin sector. This reflects an increased focus on protecting users from dubious projects.
The rise of utility in meme coins!
As you know from Kriptokoin.com, meme coins have often been criticized for lacking utility. However, they are now increasingly finding real-world applications. Binance CMO says that projects with meaningful use cases are gaining traction. He also emphasizes that they are becoming a priority for Binance listings. This marks a shift compared to how memecoins were previously seen as volatile assets.
Conlan notes that Binance uses a thorough vetting process that evaluates factors such as project founders, team credibility, and long-term plans to ensure user protection. Despite the criticism, meme coins have an undeniable market impact. Data shows that the meme coin market capitalization reached nearly $90 billion during the crypto bull market in late 2021. Tokens like DOGE and SHIB made their mark during this period with social media hype and celebrity endorsements. Meanwhile, the market experienced a sharp decline in 2022. However, it has rebounded since late 2023 with the introduction of new tokens like PEPE and BONK.
What kind of meme coin listing strategy is Binance pursuing?
Conlan says that the Binance exchange’s listing teams take community feedback into account. He also explains that it uses a “secret research team” that evaluates emerging trends. However, he warns that no project is guaranteed a listing. The focus remains on identifying projects that innovate and benefit. This is in line with comments by Changpeng Zhao (CZ), former CEO of Binance, who expressed concern about meme coin speculation while advocating for real-world blockchain applications.
Risks and future outlook of meme coin projects
Meme coins continue to attract investor interest. Analysts have highlighted potential risks, including allegations that Binance bought and boosted certain tokens, such as ACT and PNUT, after listing them. Despite these concerns, the sector continues to reflect its high-risk, community-driven nature. Experts assess that public service-oriented projects are poised to shape the future of the crypto market. They predict explosive growth over the next 18 to 24 months.
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