"CZ Donates $100K to Meme Coin Victims After TST, BROCCOLI Crash"

Binance's CZ Compensates Victims of TST & BROCCOLI Meme Coin Crash

Binance founder Changpeng Zhao, also known as CZ, has stepped in to support investors who lost money in the recent pump-and-dump of the TST token and BROCCOLI meme coin. His decision to donate funds to affected investors has reignited the meme coin mania, highlighting the ongoing cycle of speculation, hype, and financial risk in the crypto space.

The chaos began when CZ shared an educational video about the BNB Chain, featuring a token called Test (TST) as an example. This led to the creation of a TST meme coin, which saw a surge in trading despite CZ having no direct involvement. Meanwhile, another meme coin named BROCCOLI took off after CZ mentioned his dog's name, fueling speculation.

Initially, these tokens experienced significant gains—BROCCOLI, for example, jumped 160% at launch. However, the rally was short-lived. Both tokens crashed by more than 60-80% in just days, triggering panic among traders who had jumped in hoping for quick profits.

Seeing the financial damage caused by the hype, CZ decided to take action. He announced that any funds sent to his address would be donated to victims of TST and BROCCOLI. Additionally, he donated 150 BNB (worth about $100,000) to a university student who had already contributed $50,000 to help victims of another crypto project, Libra.

CZ clarified that his donations do not mean he endorses these tokens. “I won’t be keeping a satoshi of it. Will donate it away, most likely to people who had a loss on TST or some of the Broccolis,” he wrote on X. He also warned investors against reading too much into his actions, reminding them that speculation often leads to losses.

CZ's latest move serves as a warning about the unpredictable nature of meme coins. He also pointed to the LIBRA token, which went through a similar pump-and-dump cycle after being linked to Argentina's President Javier Milei.

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