The wild ride of BNB Chain memecoins hit a sudden, jarring halt. Just recently, these digital tokens were soaring, drawing in thousands of traders. Then, almost overnight, many saw their value cut by 60% to 95%.
- BNB Chain memecoins experienced a dramatic crash, with many tokens losing 60% to 95% of their value shortly after Binance founder CZ clarified his social media posts are not trading signals.
- The frenzy, dubbed “BNB meme szn,” saw over 100,000 traders participate, with significant profits for many, and a surge in activity on BNB Chain’s decentralized exchanges.
- CZ’s direct response to a user’s warning stated his tweets are “not endorsements” and any overlap with memes is coincidental, leading to an immediate market correction.
What caused this dramatic shift? It appears a few words from Binance founder Changpeng “CZ” Zhao changed everything. He made it clear his social media posts are not trading signals.
The ‘BNB SZN’ Frenzy
Before the tumble, the BNB Chain was buzzing. People called it “BNB meme szn!” This was a time when new memecoins, often just days old, popped up and caught fire. Traders jumped in, hoping for quick gains.
The numbers from Bubblemaps tell a story of intense activity. At the peak of this frenzy, more than 100,000 onchain traders had bought into these new BNB memecoins. About 70% of them were sitting on profits, which is quite a figure.
Some of these traders saw truly eye-popping returns. One individual reportedly booked over $10 million. Forty others cleared seven-figure sums, and another 900 wallets saw gains above $100,000. It was a gold rush, or at least it felt like one.
This surge in memecoin trading also supercharged activity across BNB Chain’s decentralized exchanges (DEXs). PancakeSwap, the leading DEX on BNB Chain, processed nearly $80 billion in trades during September. That was its busiest month since November 2021, showing just how much capital was flowing.
October started strong too, with $30 billion in volume cleared in the first nine days alone. Overall, DEX volumes hovered around $19 billion in a recent 24-hour period, with BNB Chain platforms accounting for a significant 40% of that total. It really was a moment for the BNB ecosystem.
Even Binance’s native BNB token, the backbone of the chain, felt the lift. Its price climbed to a record high of about $1,350 on Tuesday. It later eased back to roughly $1,270, but the enthusiasm was clear.
CZ himself acknowledged the trend. He posted on Tuesday, declaring it “BNB meme szn!” This tweet, perhaps meant as an observation, was seen by many as a nod of approval, or even an encouragement.
A Sudden Shift in Sentiment
But then, the mood shifted. A user named YazanXBT issued a warning to traders. They pointed out that sending coins to CZ’s wallet or tying token names to his posts did not reduce risk. It was a sensible caution, reminding everyone that even perceived endorsements carry no guarantees.
CZ responded directly to this. He replied that his tweets are “not endorsements.” He stressed, “Now I just tweet normally, any overlap to memes is coincidental.” It was a clear statement, meant to draw a line between casual social media activity and financial advice.
The market reacted almost immediately. Prices of BNB memetokens trading on PancakeSwap tumbled shortly after Zhao’s tweet. It was a swift and brutal correction. Some of these tokens were only hours or days old, still finding their footing. Others had been trading for months, yet they too fell victim to the sudden change in sentiment.
The impact was severe. Several pairs saw their market caps (the total value of all outstanding tokens) fall by more than 95% in just 24 hours. Liquidity drained out of these tokens, meaning there were fewer buyers to meet sellers. Traders exited their positions in a hurry, trying to salvage what they could.
It’s a stark reminder of the volatile nature of memecoins. Their value often hinges on hype, community sentiment, and, sometimes, the perceived backing of influential figures. When that perception changes, the floor can drop out quickly.
This episode shows how a single, clarifying statement from a prominent figure can ripple through a highly speculative market. It also highlights the constant dance between excitement and caution in the crypto space. What will the next “szn” bring?
