BNB News Today: Phishing attack sparks $200M memecoin rally; trader nets 650x returns

A cryptocurrency trader has turned a $3,000 investment into approximately $2 million by capitalizing on the surge of the "4" ($4) memecoin following a social media post by Binance co-founder Changpeng "CZ" Zhao. The trader, identified by wallet address "0x872," acquired the token early in its launch on the BNB Chain, achieving a 650-fold return on investment Cointelegraph^[1]. The token's meteoric rise was fueled by community-driven sentiment after a phishing attack on the BNB Chain, which initially netted the hacker $4,000. The incident was swiftly transformed into a meme, with Zhao's post amplifying the token's visibility to his 8.9 million followers on X Cointelegraph^[1].

Blockchain analytics platforms highlight the trader's strategic positioning. The investor retained 98% of their holdings, still valued at $1.88 million, while the token's market capitalization briefly surpassed $200 million Cointelegraph^[1]. Smart money traders, tracked by platforms like Nansen, also contributed to the surge, purchasing nearly $100,000 worth of the token within 24 hours Cointelegraph^[1]. This aligns with historical patterns in the memecoin market, where speculative trading and influencer endorsements often drive extreme volatility. For instance, a March 2025 trader turned $2,000 into $43 million via the Pepe (PEPE) memecoin, though unrealized gains later contracted due to price corrections Cointelegraph^[1].

The "4" memecoin's origin story underscores the unpredictable nature of the sector. Born from a phishing attack, the token was initially dismissed as a byproduct of a security breach but was later embraced by the BNB Chain community as a symbol of decentralized resilience KuCoin^[4]. Zhao's post, which humorously referenced the hacker's $4,000 profit, catalyzed a parabolic price movement. Within hours, the token's value surged over 500%, with cumulative trading volume reaching $18.4 million . The trader's portfolio, which included 6.31% of the total supply, saw unrealized gains exceed $11 million, reflecting a 16,100% return KuCoin^[4].

Industry analysts caution that memecoins remain speculative assets with no intrinsic utility, making them highly susceptible to market sentiment. The "4" token's peak market capitalization of $200 million was followed by a sharp correction to $136 million within days KuCoin^[4]. This volatility mirrors broader trends in the memecoin space, where projects like Pepe and Dogecoin have historically experienced rapid price swings. Bloomberg analyst James Seyffart noted that memecoins thrive on "community storytelling," with CZ's endorsement acting as a narrative catalyst KuCoin^[4].

The incident also raises questions about the influence of prominent figures in crypto markets. While Zhao explicitly disclaimed any endorsement of the "4" token, his post triggered a frenzy among traders, particularly Chinese key opinion leaders (KOLs), who amplified the token's exposure FinanceFeeds^[2]. The BNB Chain team deleted the tutorial video that inadvertently revealed the token's name and burned 0.13% of its supply to mitigate further speculation FinanceFeeds^[2]. Despite these efforts, the token's price surged to $0.1809, driven by speculative buying and social media hype KuCoin^[4].

The broader implications for the crypto market include the growing role of community-driven projects and the risks associated with influencer-driven speculation. While the "4" token's future remains uncertain, its trajectory highlights the potential for memecoins to command significant attention and liquidity. However, regulatory scrutiny and the absence of fundamental value continue to pose challenges for the sector KuCoin^[4]. As CZ's recent remarks on Bitcoin reserves and decentralized adoption suggest, the crypto ecosystem remains a dynamic and unpredictable landscape FinanceFeeds^[2].