- Binance CEO Changpeng Zhao admitted that he doesn't "get" meme tokens like dogecoin and shiba inu.
- But he told the Associated Press that these demonstrate the power of decentralization.
- "We have a lot more meme coins. But guess what? For something to be valuable, you only need one other person to want to buy it," he said.
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CEO Changpeng Zhao admitted that while he doesn't "get" meme tokens like dogecoin and shiba inu, these demonstrate the power of decentralization.
"To be honest, I don't get dogecoin. But this shows the power of decentralization. What I think may or may not matter," he told the Associated Press. "If a large enough number of people in the community values it because it's cute because they like the meme, then it has value."
Meme coins have emerged in popularity as retail investors direct their attention to newer and lesser-known coins, which have become popular for their sky-high gains compared to more established assets.
For instance, dogecoin has risen 4,936% year-to-date, while shiba inu has rocketed to 63,870,000%. By contrast, bitcoin has gained 108% since the start of the year, and ether is up 474%.
"Dogecoin has lasted so many years. It's gone up and down, up and down, but it's lasted," the executive told the AP. "And now we have shiba, which is also a meme coin. We have a lot more meme coins. But guess what? For something to be valuable, you only need one other person to want to buy it."
Dogecoin was founded in December 2013 in the hopes of becoming the "fun and friendly internet currency." Shiba inu was founded in August 2020 with the goal of moving away from "rigid social structures and traditional mindsets."
Many view meme tokens as jokes but exchanges are taking notice by listing them.
Crypto exchange Gemini, for instance, added shiba inu coin to its platform this week following the meme token's stunning rally this year, joining Binance, Coinbase, Public, Crypto.com, and eToro, among others.
"For something to have liquidity, you need a large number of people to want to buy it or sell it," Zhao said. "Once you have liquidity, a thing has value, according to the neutral market. So it's not up to me to judge it."