Binance’s CZ Drops $100K to Help TST & BROCCOLI Token Holders

Binance founder CZ announced he will help investors affected by the TST and BROCCOLI price crashes.

Both tokens dropped 60-80% in the past week and caused a lot of panic in the crypto community. He will donate all the funds received at his address to the affected users.

This comes as the meme coin volatility is getting more and more serious, with many projects shooting up by 10-20x in a day fueled by social media hype and then crashing, leaving retail investors in the red. CZ’s move is to provide some relief and to remind everyone to be more cautious when it comes to speculative crypto trading.

Binance Founder Donates $100K to Victims

Meme coin speculation went into overdrive when CZ’s dog’s name BROCCOLI inspired the creation of several meme tokens. One of them, CZ’s Dog BROCCOLI, went up 160% before dropping 75% from its peak. Many traders who bought in at higher prices lost a lot of money due to the pump-and-dump cycle.

So CZ donated 150 BNB (~$100,000) to a university student who had already contributed 50,000 of his own funds to help victims of the Libra token project. He said his contribution will be for TST and BROCCOLI victims and that he’s against reckless speculative behavior.

Interestingly, after CZ’s donation, the receiving address received more funds beyond his initial contribution, including more BNB and other tokens. CZ said he won’t keep those funds and will direct them to the affected investors.

Key Takeaways:

• CZ pledged all proceeds from his address to TST and BROCCOLI victims.

• He donated 150 BNB (~$100K) to a student-led relief initiative.

• Both tokens suffered significant losses, falling 60-80% from peak levels.

• The move underscores the risks of speculative trading in meme coins.

Lessons from the Meme Coin Frenzy

Meme coin hype went into overdrive when CZ posted an educational video about the Test (TST) token on BNB Chain. Traders created a meme coin with the same name and it shot up. But TST dropped more than 52% in a week despite daily trading volume surging 48% to over $205 million.

CZ has since separated himself from the TST token’s astronomical rise and fall and emphasized that you need to understand tokenomics before investing. He also warned against big names endorsing speculative tokens, citing the recent LIBRA token pump and dump which was tied to Argentinian President Javier Milei.

In a post on X (formerly Twitter), CZ cautioned traders: “When you try to make quick money, you often lose. When you give money away, you get more back.” His message serves as a reminder that responsible investing and due diligence are critical in the volatile world of cryptocurrency.