Binance’s CZ Compensates Victims of TST & BROCCOLI Meme Coin Crash

The post Binance’s CZ Compensates Victims of TST & BROCCOLI Meme Coin Crash appeared first on Coinpedia Fintech News

Binance founder changpeng zhao

changpeng zhao

Changpeng Zhao is the Founder and Chief Executive Officer at Binance. His contribution to the enhancement of Binance made the platform the world’s largest cryptocurrency exchange since its inception in 2017. Zhao launched the blockchain network Binance Smart Chain which has made a remarkable contribution to the development of the decentralized finance ecosystem. Whereas in 2019, he launched Binance’s US affiliate, Binance. The US.
Details:

Organization: Binance
Location: United Arab Emirates
Skills: Trading System and Electronic Trading

Experience:

CEO at Binance from Jul 2017 to Nov 2023 ·
Founder at BijieTech from Sep 2015 to Jul 2017 
Head of Development at Blockchain.com from 2013 – 2014 ·
Partner at Fusion Systems Group  from Nov 2005 to Dec 2013 
Head of Tradebook Futures Development at Bloomberg from 2001 – 2005 

FAQ
1. What is the net worth of Changpeng Zhao? 
Changpeng’s net worth is $6,260 crores.
2. What are the latest investments of  Changpeng Zhao?
Changpeng Zhao investing in the blockchain sector as well as artificial intelligence and biotechnology
 

EntrepreneurInvestorChief Executive Officer

has stepped in to support investors who lost money in the recent pump-and-dump of the TST token and BROCCOLI meme coin. His post about donating funds to affected investors has reignited the meme coin mania, underscoring the ongoing cycle of speculation, hype, and financial risk in the crypto space. 

What Happened with TST and BROCCOLI?

The chaos began when CZ shared an educational video about the BNB Chain, featuring a token called Test (TST) as an example. This led to the creation of a TST meme coin, which saw a surge in trading despite CZ having no direct involvement. Meanwhile, another meme coin named BROCCOLI took off after CZ mentioned his dog’s name, fueling speculation.

Initially, these tokens experienced 50% gains—BROCCOLI, for example, jumped 160% at launch. However, the rally was short-lived. Both tokens crashed by more than 60-80% in just days, triggering panic among traders who had jumped in hoping for quick profits. 

CZ Steps in to Compensate Investors

Seeing the financial damage caused by the hype, CZ decided to take action. He announced that any funds sent to his address would be donated to victims of TST and BROCCOLI. Additionally, he donated 150 BNB (worth about $100,000) to a university student who had already contributed $50,000 to help victims of another crypto project, Libra.

CZ clarified that his donations do not mean he endorses these tokens. “I won’t be keeping a satoshi of it. Will donate it away, most likely to people who had a loss on TST or some of the Broccolis,” he wrote on X. He also warned investors against reading too much into his actions, reminding them that speculation often leads to losses. 

After completing his four-month prison sentence on September 27, 2024, CZ wants to clean his public image and this compensation move could be a strategy to divert any negative talks. Moreover, he is now focusing more on investing and launching his digital education platform, Giggle Academy to educate new investors.

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A Reminder About Meme Coin Risks

CZ’s latest move serves as a warning about the unpredictable nature of meme coins. He also pointed to the LIBRA token, which went through a similar pump-and-dump cycle after being linked to Argentina’s President Javier Milei.

Echoing a similar sentiment, Crypto expert Clayton Lowery, explains that many new tokens are created just to make quick money and disappear. Data from Chainalysis shows that in 2024, over 400,000 tokens were launched in just one month, but only 1.7% are still actively traded. This means most tokens either fail or are abandoned after the hype fades. Lowery also points out that 94% of suspected pump-and-dump tokens were scams where creators took the money and ran, while 6% were manipulated by insiders. 

However, not all meme coins are bad—some try to build real value through community involvement or useful features. Experts advise investors to look for projects with real utility rather than just hype to avoid getting caught in scams.