Changpeng Zhao (CZ), former CEO of Binance, recently revealed the named of his Belgian Malinois puppy as “Broccoli” on social media platform X. After this post, several memecoins were created in the name of “Broccoli”. CZ then took over his social media post again and said that he had no intention of launching a memecoin himself adding. ” For those asking for a CA (contract address) from me, no, I am NOT issuing a meme coin. I am just posting a photo of my dog and his name, as some of your requested” CZ stated. He further added “Let the best meme coin in the community win.”
Strategic Acquisition
A trader (also referred as sniper) saw this incident as an opportunity and immediately acquired a significant number of these “Broccoli” named memecoins. To maximize his profits and to keep things private, he used a tool called “disperse” that distributes ether or tokens to multiple addresses according to Lookonchain. This resulted in immediate systematic selling without attracting immediate attention.
Consolidation and Conversion
Later on, the sniper dumps these memecoins for Binance Coin (BNB) and then consolidates these coin into a specific wallet identified as “0xe332…03f3.” Subsequently the accumulated BNB was converted into Tether (USDT), a stablecoin pegged to US dollar. This series of transactions resulted in a total profit of $27.8 million for the sniper.
Market Implications
This incident just reminds us how volatile the crypto market is and timely strategic actions can give out substantial gains. The rapid proliferation of memecoins also highlights the potential risks for investors as many of the “Broccoli” tokens experienced significant volatility. Some of these memcoins reached market capitalization of $1 billion before crashing.
CZ Reacts to Criticism on BSC and Memecoins
Even though the community went crazy for the Broccoli token, critics did not back off from criticizing CZ. One of the critic said that this move was a strategic plan to get more activity on the Binance Smart Chain (BSC). User also accused CZ of being selfish and prioritizing BSC’s growth over community well-being.
CZ acknowledged the criticism and said that it was a goal to get an increased activity on the BSC. He also clarified he did not want to run or issue a memecoin since it is community driven. However, he noted that the feedback has been received.
There were other users who applauded CZ, calling this situation to be a stress test for the chain and stating that the chain handled it very well.
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