CZ calls BSC meme coin ecosystem ‘immature’ amid surge in meme coin activity

Binance Founder Changpeng “CZ” Zhao called the meme coin ecosystem on BNB Smart Chain “immature” to be able to handle the soaring demand brought on by a sudden surge in meme coin activity. 

In his recent post on X, CZ said that the meme coin ecosystem on BNB Smart Chain is “immature.” His comments come in the wake of the recent surge in meme coin activity, driven in part by a frenzy of dog-themed meme coins being launched on the platform after CZ shared a post on X featuring his pet dog named Broccoli. 

Earlier, BNB Smart Chain launched its native Test (TST) coin, which was initially created as part of a tutorial video for Four.meme launchpad. Although it was not intended for trading, TST experienced a staggering 2,000% surge ahead of its Binance listing, hitting an all-time high of $0.56 before stabilizing at around $0.11, according to Coinmarketcap. The hype was so intense that it has contributed to increased activity on the BNB Chain, with PancakeSwap, a decentralized exchange built on BNB Chain, overtaking Uniswap in terms of daily and weekly trading volumes. 

In his X post, CZ acknowledged that while meme coins are flooding BNB Smart Chain, the infrastructure supporting them is still struggling to meet the growing demand. He described the ecosystem as “immature” and explained that system performance issues are common in emerging platforms. “Without demand or real traffic, systems can never be tuned perfectly. You’d think they should test it beforehand, and I am sure they do, but the real traffic patterns are always different. On the bright side, there is demand now, and the platforms will improve, albeit with some pain,” he explained. 

Is BNB Smart Chain on the cusp of a meme coin season?

Harrison Seletsky, the director of business development at SPACE ID, said that the launch of TST could be the catalyst for a meme coin season on BNB Chain. He noted that while the idea of a meme coin boom on BSC may have seemed unlikely at first, it could ultimately prove beneficial for the platform. More meme coin trading, Seletsky argued, would bring additional liquidity to the network, attract new users, and further engage the existing community.

With Broccoli meme coins flooding BNB, Seletsky’s prediction following the TST surge appears to be coming true. If this trend continues, BNB Chain’s infrastructure will need to evolve quickly to handle the growing wave of traffic and demand.