Changpeng Zhao, founder and former CEO of Binance, inadvertently set off a trading frenzy around a test token named TST. Remarkably, one trader transformed an investment of $35,000 into nearly $700,000, a gain approaching 1,900%.
The event unfolded around Four.meme, known as the first meme coin fair launch platform on the Binance Smart Chain (BSC).
This surge originated from an educational video produced by the BNB team, illustrating the process of launching a meme token on Four.meme. Unexpectedly, this caused the test token TST's market value to soar. Zhao addressed the situation on social media platform X, formerly known as Twitter, explaining that TST’s traction was due to a video tutorial mistakenly posted on Four.meme.
“In this video, we launched a token named TST as the example,” he clarified, attributing the leak to a BNB Chain team member.
After the unintentional reveal, members of the Chinese crypto community recognized and started vigorously trading and promoting TST. Zhao stressed that neither he nor the Binance exchange held any TST.
“This is NOT an endorsement of the token… No one on the team (or Binance) holds any of that token. It is a test token used just for that video tutorial,” he noted.
Reportedly, a team member also erased the private key for the tutorial wallet. Nevertheless, speculation drove TST’s market value to approximately $500,000 in a matter of hours.
Crypto analyst Ai highlighted a noteworthy transaction. A trader, known by the wallet address 0xeBB…74711c, secured $35,000 of TST shortly before Zhao's announcement. As enthusiasm built, the trader’s profits reached $657,000, reflecting a remarkable 1,885% return. Ai speculated whether sheer luck or insider knowledge informed the trader's timely purchase.
“Lucky/smart money 0xeBB…74711c happened to open a position of 35,000 USD in tokens five minutes before CZ tweeted about TST, now with a floating profit of 657,000 USD, and a return rate of 1885%!” Ai commented.
Adding intrigue, crypto enthusiast 0xSun suggested the address might belong to a Binance Chain team member, stirring discussions about potential insider trading.
Elliot’s Crypto, a seasoned industry player, remarked that BNB community members seized the opportunity, leveraging the buzz to drive a meme-fueled price surge.
“Let’s send it for the culture of BNB memes… There could be significant opportunities at these levels. I held onto a small amount after the dip; it was first shared by the BNB chain in the video, but the community discovered its potential,” the user observed.
While Zhao maintains that TST was intended solely for educational purposes, the incident underscores the profound influence he and other industry leaders wield. Even an unintentional mention can provoke market volatility. Analysis from Gecko Terminal reveals that TST retains a value significantly above its initial price, with a market cap of $15.1 million at the time of writing, though profit-taking continues.
Of note, Four.meme is a platform on the BNB chain facilitating easy meme coin creation and launch. It coincides with a growing trend of token launchpads that allow effortless creation of new cryptocurrencies.
The launchpad enters a crowded field with platforms like Solana’s Pump.fun, Tron’s SunPump, and PancakeSwap’s SpringBoard offering similar services, which have eased token creation and led to a boom in meme coins.
However, the rising popularity of these platforms attracts regulatory attention. The UK’s Financial Conduct Authority (FCA) recently warned about Pump.fun, suggesting possible violations of financial regulations.
Furthermore, Pump.fun has been criticized for enabling harmful live streams where malicious actors misled investors.
As token launchpads continue to proliferate, regulatory oversight is anticipated to increase, aimed at preventing manipulation and protecting investors from fraudulent activities.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.