- Binance became the center of attention after a test memecoin, TST, surged by an incredible 22,500% following a post from Changpeng “CZ” Zhao.
- The brief frenzy highlighted the unpredictable nature of the crypto market and the power of influencer-driven price movements.
The Unexpected Surge
A Binance test memecoin (TST) saw its price skyrocket by an astonishing 22,500%, only to crash just minutes later. This dramatic surge followed a post by Changpeng “CZ” Zhao, the founder of Binance, which sent the market into a frenzy.
The Catalyst: CZ’s Tutorial Video
The story began when Zhao shared a tutorial video on X, revealing how to launch memecoins using the Four.Meme platform. The video, created by the BNB Chain team, used TST as an example. However, the unintended exposure of the token’s name set off a wave of speculative trading, especially among Chinese crypto influencers, known as KOLs, who are famous for their market-shaping influence.
A Quick Crash
As the hype took off, TST’s price skyrocketed to $0.0517, pushing its market cap to a remarkable $52 million. But within minutes, the speculative fervor cooled, and the token’s value plummeted back to $15 million.
CZ Responds
In response to the chaos, the Binance Chain team quickly removed the video and deleted the private key tied to the creator address, which held 0.13% of TST’s total supply. However, CZ’s reaction was unexpected. He hinted that the tutorial video might be re-uploaded, stating, “It is what it is. This is NOT an endorsement from me for the token,” while adding, “Happy trading!”
Binance to YZi Labs: CZ’s Strategic Shift After Legal Setback
This incident came on the heels of another significant event in Zhao’s career. Following his four-month U.S. prison sentence for money laundering charges, Zhao returned to Binance Labs, which has now been rebranded as YZi Labs. The firm, which Zhao co-founded with Binance’s Yi He, operates as a family office investment firm, separate from Binance’s direct operations.
YZi Labs and Its Growing Influence
YZi Labs now manages around $10 billion in assets and has invested in major blockchain companies like Sky Mavis, LayerZero, Aptos Labs, and Polygon. With over 250 projects in its portfolio, YZi Labs continues to make waves in the crypto world.
The Future of Bitcoin Reserves
Adding to the intrigue, Zhao recently suggested that China could adopt a Bitcoin reserve in the future. Speaking at the Bitcoin MENA conference, he emphasized that smaller countries may lead the way in adopting Bitcoin reserves, with larger nations like China following suit later. Zhao, who grew up in China, noted the country’s unpredictable crypto stance but maintained that a Bitcoin reserve was “inevitable.” He pointed out that Bitcoin is the only “hard” asset, making it a crucial reserve for the future.
A Volatile Market
This episode highlights just how volatile the crypto space can be. Memecoins like TST can surge and crash in an instant, influenced by the most unexpected events. As Zhao’s influence continues to shape the industry, all eyes will remain on the next big move from Binance and YZi Labs.
