The memecoin craze on BNB Chain has seen a sharp decline. Many BNB-based tokens have lost between 60% and 95% of their value in the past 24 hours after Changpeng Zhao (CZ), founder of cryptocurrency exchange Binance, stated that his social media posts “do not constitute investment advice or endorsement.”
The incident began with a warning to investors from user X, YazanXBT, who stated that some developers sending tokens to CZ's wallet or referencing his tweets in their token names “did not mitigate the risk.”
CZ then stated, “My tweets are not endorsements. I'm just tweeting normally now, any similarities to memecoins are purely coincidental.”
Following the announcement, prices of BNB memecoins on PancakeSwap plummeted. Some tokens had only a few hours or days of trading history, while others had been trading for months. The market value of many trading pairs shed more than 95% in 24 hours, rapidly diminishing liquidity and prompting investors to close their positions.
However, the volatility before the drop did generate substantial gains for some investors. One trader earned more than $10 million, 40 investors made seven-figure returns, and nearly 900 wallets saw profits exceeding $100,000.
The intense trading traffic has driven record volume on decentralized exchanges on BNB Chain. PancakeSwap reached $80 billion in trading volume in September, its busiest period since November 2021. In the first nine days of October, volume has already surpassed $30 billion.
*This is not investment advice.
