Binance CEO: Dogecoin’s Survival Thanks to Elon Musk’s Support
Changpeng Zhao, the CEO of Binance, expressed surprise that Dogecoin (DOGE) is still thriving despite its perceived lack of utility.
During an AMA session on May 17th, Zhao stated:
“I’m genuinely surprised by Dogecoin. It has demonstrated an astonishing level of endurance, considering that I thought it would have disappeared by now. However, Elon Musk has contributed to prolonging the lifespan of this meme coin.”
And we’re live!
Tune-in to our AMA with @cz_binance here ⬇️https://t.co/2mHJwtKDog
— Binance (@binance) May 17, 2023
In recent weeks, a new wave of meme coins, led by PEPE and LADYS, has emerged. CZ this week claimed that he genuinely doesn’t understand the appeal of meme coins and has no interest in holding them, as he prefers tokens with clear utility.
“It appears to be popular at the moment, but it should be noted that it also carries significant risks,” warned Zhao.
Nevertheless, Zhao clarified that he does not hold a hostile attitude toward this type of coin. In fact, Binance recently listed PEPE. “We simply fulfill the needs of our users,” emphasized CZ, reiterating his previous stance.
Elon Musk’s Influence on Dogecoin
Dogecoin, one of the original meme coins created in 2013 featuring a Shiba Inu (dog), was initially meant as a playful parody of Bitcoin. However, nobody could have predicted that Tesla CEO and Twitter owner Elon Musk would become the “DogeFather” of DOGE, actively endorsing and promoting the cryptocurrency on social media. Musk’s involvement has attracted a significant fan base for Dogecoin, turning it into a market phenomenon.
Musk first publicly mentioned DOGE in 2019 when he tweeted, “Dogecoin might be my favorite cryptocurrency. It’s pretty cool.”
Dogecoin might be my fav cryptocurrency. It’s pretty cool.
— Elon Musk (@elonmusk) April 2, 2019
Two years later, Musk shared a photoshopped image from “The Lion King” in which he held a Shiba Inu dog.
Additionally, DOGE is part of Musk’s cryptocurrency portfolio, alongside Bitcoin and Ethereum. Musk even bought some Dogecoin for his youngest son. Last year, Tesla started accepting Dogecoin as payment for certain products. Most recently, Musk surprised the Twitter community by replacing the platform’s logo with a Dogecoin symbol.
As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.
— Elon Musk (@elonmusk) March 14, 2022
Musk’s statements and actions have significantly impacted the price of Dogecoin. Currently, DOGE ranks 8th globally, with a market capitalization of over $10 billion and trading around $0.0736.
In conclusion, Zhao’s preference lies with tokens that offer utility, and he consistently believes that “the utility of a token is perhaps its most fundamental value.” His Twitter profile reflects his holdings, which consist solely of BTC and BNB.
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