CZ Steps In to Aid TST and BROCCOLI Investors
In a significant move, CZ expressed his intention to assist those affected by the TST and BROCCOLI tokens, both of which recently experienced dramatic pump-and-dump schemes. Over the past week, these tokens—linked to CZ—have plunged between 60% and 80% from their peak, sparking widespread panic in the market.
The BROCCOLI Meme Coin Hype and Its Aftermath
CZ inadvertently found himself at the center of the meme coin frenzy after publicly mentioning his dog, Broccoli. This sparked the creation of multiple meme coins under the same name, leading to a speculative price surge followed by a sharp collapse.
Although the price of the “CZ’s Dog BROCCOLI” token initially soared by 160% at launch, it has since crashed more than 75%, causing significant losses for investors caught in the hype.
CZ’s Response: Donations to Impacted Investors
In an effort to mitigate the damage, CZ has begun making donations to help affected investors. On Tuesday, he contributed 150 BNB (approximately $100,000) to a university student who had already invested $50,000 of his own funds to support victims of the Libra project. Notably, this student had previously made substantial gains from BNB investments.
Interestingly, the wallet that received Zhao’s donation has since accumulated even more BNB and additional tokens. CZ made it clear that he will not keep any of these funds, stating that they will be donated to those who suffered losses from the TST token and BROCCOLI meme coin.
Writing on X (formerly Twitter), CZ emphasized:
“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. This is NOT an endorsement for any of the tokens. Do NOT overinterpret this.”
He added: “When you try to make quick money, you often lose. When you give money away, you get more back.”
Caught in the Meme Coin Frenzy
Binance founder Changpeng Zhao (CZ) has found himself at the center of a meme coin frenzy after sharing an educational video about BNB Chain last week. The video featured a Test (TST) token as an example, inadvertently sparking the creation of a TST meme coin that quickly saw a surge in trading activity. However, Zhao has completely distanced himself from this development. Over the past week, TST’s price has plunged by more than 52%, while its daily trading volume has surged by 48%, exceeding $205 million.
Zhao also weighed in on the recent pump-and-dump scheme involving LIBRA tokens, which had been endorsed by Argentine President Javier Milei. In a post, CZ stressed the importance of caution for influential industry figures when discussing or endorsing tokens. He highlighted that a project’s tokenomics plays a crucial role in determining its value and long-term sustainability.
