BNB Meme Coins Plummet As CZ Says His Tweets Are Not Endorsements

BNB Chain meme coins plummeted after Binance founder Changpeng Zhao (CZ) said that his posts on X should not be seen as endorsements.

4, which soared to a new all-time high (ATHs) during the recent frenzy, has slumped over 22% in the last 24 hours, according to CoinMarketCap. 

Among other prominent names, Palu (PALU) slid over 14% and GIGGLE plunged before bouncing back to trade 3% down. Many other BNB tokens have lost more than 20% of their value.

CZ Says His Posts Are Not Financial Advice

CZ said in an X post that he tried to avoid posting content related to meme coins online, but added that this was “impossible” given that there are “too many” of these tokens in the market.

”For a brief time, I tried avoiding meme related content in my tweets,” he said. “Now I just tweet normally, any overlap to memes is coincidental, not endorsement.”

CZ was replying to a post by X user “Yazan,” who warned of the risks of meme coins. 

“CZ saying a word doesn’t automatically mean you should look for a meme coin with that word and buy it,” wrote Yazan, who added that he is “very confident “ that CZ “is not hinting at anything when he says something.”

CZ’s reply follows an Oct. 7 post in which he declared the start of a BNB meme coin season. 

That was as prices of tokens in the BNB ecosystem soared. At the peak of the frenzy, over 100K on-chain traders had bought into new BNB meme coins, with around 70% of the traders in profit, data from Bubblemaps showed.

One of the traders was even able to generate over $10 million in profit, while another 40 achieved profits exceeding $1 million. Nine hundred more traders saw gains of over $100K.

CZ Says People Give Him Too Much Credit For Market Moves

In a follow-up post on X, CZ said he was busy with in-person meetings in Bahrain when BNB meme coin prices started to drop.

“People often give me too much credit, in good times and bad,” he said. “I didn’t do anything. Was busy all day.”

He also speculated that the price drops could have been driven by FUD (Fear, Uncertainty, and Doubt) and fake news that Binance Alpha was not going to list certain coins in the future. 

“But the FUD already done its damage,” he wrote. “This is the unfortunate power of FUD when enough people get fooled by it.”

Some in the crypto community have shown their support for CZ, who they say is being targeted by FUD spreaders. However, the Binance co-founder said that he is not too concerned. 

Another person suggested that the FUD around CZ will go away soon before jokingly adding that it will likely return next week.

CAKE And BNB Also Tumble

CAKE, the native token of decentralized exchange PancakeSwap that facilitated massive trading volumes on BNB ecosystem during the frenzy, is down 2% after CZ confirmed that his posts are not endorsements. 

The meme coin frenzy helped fire BNB to a new ATH of $1,336.57 on Oct. 7, but it has since lost 6%.

BNB price

BNB price (Source: CoinMarketCap)

Following a more than 2% drop in the past 24 hours, BNB trades at $1,251.77 as of 7:01 a.m. EST. It’s still up 41% in the past month.

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