The madness for memecoins on #bnb Chain has taken a sudden turn, with many tokens losing between 60% and 95% of their value in the last 24 hours. This occurred after Changpeng "#CZ " Zhao, founder of #Binance , warned that his posts on social media should not be seen as trading signals.
CZ was responding to a separate tweet from user YazanXBT, who advised traders that sending coins to CZ's wallet or linking token names to his posts did not reduce risk.
Zhao responded that his tweets "are not endorsements" and emphasized: "Now I just tweet normally, any coincidence with the memes is accidental."
The prices of #memetoken of BNB traded on PancakeSwap—the leading decentralized exchange (DEX) on BNB Chain—plummeted shortly after Zhao's tweet. Some tokens had only been in existence for hours or days, while others had been operating for months.
Several pairs saw their market capitalization drop by more than 95% in 24 hours as liquidity dried up and traders closed their positions.
💸 The Frenzy of "BNB SZN"
At the peak of euphoria on Tuesday, more than 100,000 on-chain traders had invested in these new BNB memecoins, according to Bubblemaps, with around 70% of them in profit at that time.
An individual trader recorded profits of over $10 million, while another 40 made seven-figure sums, and 900 more wallets saw gains exceeding $100,000.
This wave of trading triggered activity on BNB Chain's decentralized exchanges. PancakeSwap processed nearly $80 billion in trades in September, its most active month since November 2021. October has started strong, with a volume of $30 billion liquidated in just the first nine days.
The overall volumes of #DEX have hovered around $19 billion in the last 24 hours, and BNB Chain platforms account for about 40% of that total.
Zhao himself had acknowledged the trend in a Tuesday post declaring it was "BNB meme szn!" (BNB meme season).
The intense activity also helped propel Binance's native coin, BNB, to a record of approximately $1,350 on Tuesday, before retreating to around $1,270 currently.
Final Comment: This event is a stark reminder of the volatile and speculative nature of the memecoin market. CZ's warning, although simple, acted as a catalyst for massive profit-taking, demonstrating that euphoria can evaporate in a matter of hours. How long will it take for the community to forget this lesson and jump to the next "SZN"?
