Memecoins are Exploding in Popularity, But Binance CMO Says Utility is Key

• Binance CMO says utility-driven memecoins now take priority over hype for exchange listings.
• Leading memecoins like PEPE and BONK reflect a shift toward real-world use cases and market growth.
• Binance’s research team evaluates memecoins for innovation, utility, and community-driven trends.

Memecoins are exploding in popularity, but they’re also facing more scrutiny than ever. At Aus Crypto Con 2024 , Binance CMO Rachel Conlan gave the inside scoop on how the exchange decides which memecoins make the cut.

Conlan explained that while community input is important, Binance prioritizes utility-driven projects, especially in the memecoin sector. This reflects a growing focus on protecting users from suspicious projects and fostering unique use cases.

The Rise of Utility in Memecoins

Memecoins, often criticized for lacking utility, are finding increasing real-world applications. Conlan highlighted that projects with meaningful use cases are gaining traction and becoming priorities for Binance listings.

This marks a shift from earlier views of memecoins as volatile assets. Conlan noted that Binance uses a thorough vetting process, evaluating factors like project founders, team credibility, and long-term plans to ensure user protection.

Despite facing criticism, memecoins wield undeniable market influence. Data shows that the memecoin market capitalization reached nearly $90 billion in late 2021 during the crypto bull market.

Source: X

Leading tokens like DOGE and SHIB dominated this period, fueled by social media hype and celebrity endorsements. Although the market declined sharply in 2022, it has rebounded since late 2023, with newer tokens like PEPE and BONK joining established players.

Binance’s Memecoin Listing Strategy

Conlan revealed that Binance’s listing teams use a “secret research team” that evaluates community feedback and emerging trends. However, she cautioned that no project is guaranteed a listing. The focus remains on identifying projects with innovation and utility.

This aligns with comments from Binance’s former CEO, Changpeng “CZ” Zhao, who expressed concerns about memecoin speculation while advocating for real-world blockchain applications.

Memecoin Risks and Future Outlook

While memecoins continue to attract investors, analysts highlight potential risks, including allegations that Binance has purchased and boosted certain tokens like ACT and PNUT after listing them.

Despite these concerns, the sector remains dynamic, reflecting its high-risk, community-driven nature. With predictions of explosive growth in the next 18 to 24 months, utility-driven projects are poised to shape the future of the crypto market.