Binance founder Changpeng Zhao (CZ) stirred up the crypto market by posting a picture of his dog, Broccoli, on social media. While the post led to a surge in BNB trading volume, it also triggered a speculative frenzy in Broccoli-themed meme coins—most of which have since collapsed in value.
The event has sparked a heated debate in the crypto community about market manipulation and the ethics of influencer-driven trading.
Binance’s CZ Slammed for Broccoli Tokens Turnout
Following CZ’s post about his dog Broccoli, an influx of Broccoli-related tokens flooded the Binance Smart Chain (BSC). As BeInCrypto reported, investors rushed to buy these meme coins, expecting significant price appreciation.
However, according to crypto analyst DeFi Mochi, the speculative hype quickly became a financial disaster for many traders. The analyst also indicated that CZ has intentionally not endorsed any specific Broccoli token to increase speculation and volume on the BNB chain.
Despite CZ articulating that he had no direct involvement in launching any Broccoli-related token, traders scrambled to identify an “official” version. The interest culminated in a series of pump-and-dump cycles that wiped out millions of dollars in market capitalization.
“If you haven’t bridged to BNB chain here’s what you ‘missed’: Broccoli #1: $400M to $30M in 1 hour, Broccoli #2: $100M to $14M in 5 hours, Broccoli #3: $60M to $5M in 2 hours,” DeFi Mochi wrote on X.
The fallout from the Broccoli token craze has led to a wave of criticism directed at Changpeng Zhao. Crypto experts and retail investors have expressed concerns over his role in fostering speculative behavior.
“I thought CZ transformed after coming from prison—became more spiritually aligned, more detached—but I don’t think that’s the case at all… He is just like us—someone who can’t take control of FOMO/FEAR,” Hitesh.eth commented on X.
Another crypto analyst, NonFungibleYash, echoed similar sentiments, stating the allure of market emotions even among billionaires.
“CZ might have the edge, but at the end of the day, he’s playing the same psychological game as the rest of us,” the analyst remarked.
Meanwhile, others have accused CZ of manipulating market sentiment for financial gain. To some, the incident raises concerns about Binance’s future, compared to the infamous FTX collapse.
“This will make Binance like FTX if he continues with this approach. He’s openly manipulating the market,” another popular user on X expressed.
To some, CZ is also deviating from his commitment to focus on Giggle Academy, an initiative he started and committed to concentrate on following his release from prison five months ago.
Mechanics of the Speculative Frenzy
A blockchain investigator at CWEmbassy provided insight into how CZ’s influence indirectly contributed to the meme coin speculation.
“CZ knows what he is doing!!! He will always tweet like he is not interested or will never shill this and that but if you’ve been in this game long enough you will understand. He doesn’t need to put a CA to a meme to endorse it. His meme was created long ago: BNB,” they wrote.
Nevertheless, one savvy investor capitalized on the hype, making nearly $28 million by sniping multiple Broccoli-related meme coins.
According to blockchain analysis firm Lookonchain, a trader bought numerous Broccoli tokens after CZ’s tweet, distributed them across various wallets, and then dumped them for a significant profit.
“…In the end, this sniper earned a total of 27.8M USDT,” Lookonchain revealed.
Notwithstanding, the Broccoli meme coin saga highlights the volatile and speculative nature of the crypto market. CZ’s influence over market sentiment remains undeniable.
More importantly, however, the controversy raises fresh questions about the responsibilities of industry leaders in an environment where retail investors often bear the brunt of speculative manias.
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