Binance founder Changpeng Zhao (CZ) has announced plans to compensate victims of the recent pump-and-dump schemes involving TST and BROCCOLI tokens. Both tokens have plummeted between 60-80% from their peak over the past week, triggering significant market panic.
CZ’s Involvement in the Meme Coin Frenzy
The meme coin mania saw CZ’s dog name, BROCCOLI, inspire multiple tokens, leading to a speculative frenzy. One such token, “CZ’s Dog BROCCOLI,” initially skyrocketed by 160% post-launch but soon nosedived over 75%, leaving many investors in deep losses due to FOMO-driven trades.
Recognizing the financial turmoil, CZ has taken proactive steps to assist affected investors. On Tuesday, he donated 150 BNB (approximately $100,000) to a university student who had already allocated $50,000 of his own funds to aid victims of the LIBRA project. Notably, this student had previously made substantial gains from BNB investments.
Commitment to Compensation
CZ’s donation address has since received additional BNB contributions, alongside other tokens. He emphasized that he will not retain these funds and will instead direct them to victims of the TST and BROCCOLI token crashes. Sharing his views on social media platform X, CZ remarked, “When you try to make quick money, you often lose. When you give money away, you get more back.”
Funny things in crypto. 🤷♂️
— CZ 🔶 BNB (@cz_binance) February 19, 2025
When you try to make quick money, you often lose.
When you give money away, you get more back.
I donated 150 BNB (~$100,000 USD) to a university student who put up $50,000 of his own money to help Libra victims. (This student seems to have made good… https://t.co/0KbkiGZcYt pic.twitter.com/VRJmgIV5Uf
Market Chaos and Regulatory Caution
CZ found himself at the center of the controversy after sharing an educational video about BNB Chain, which inadvertently contributed to the creation of the TST meme coin. While TST witnessed a trading surge, Zhao has publicly distanced himself from its development. The token has lost over 52% of its value in the past week, with daily trading volumes spiking by 48% to more than $205 million.
Additionally, CZ weighed in on the LIBRA token pump-and-dump, backed by Argentine President Javier Milei, stressing the need for caution when influential figures endorse tokens. He highlighted the critical role of tokenomics in determining an asset’s sustainability and long-term value.
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CZ’s latest move underscores the growing scrutiny of meme coins and the broader implications of speculative trading in the crypto market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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