BNB Meme Coins Crash Up to 95% After CZ Dismisses ‘Endorsement’ Claims

BNB Chain’s meme coin rally has come to a sudden halt, with several tokens falling between 60% and 95% in the past 24 hours.

The sharp downturn followed a statement from Binance founder Changpeng “CZ” Zhao, who clarified that his social media posts should not be construed as trading signals or recommendations.

Zhao’s comments came in response to a post by trader YazanXBT, who warned users that naming tokens after CZ or sending coins to his wallet would not reduce trading risks. “My tweets are not statements of support,” Zhao wrote on X.

“Now I just tweet normally, any overlap with memes is a coincidence.” His comment quickly caused a sell-out via BNB Chain’s main decentralized exchange, PancakeSwap, where the majority of these memecoins are traded.

Over 100,000 Traders Join BNB Meme Frenzy Before the $800 Million Market Crash

Dozens of tokens that had risen during what traders dubbed the “BNB Meme Szn” lost most of their value within hours.

Market data from Bubblemaps shows that more than 100,000 on-chain traders participated in the BNB meme coin boom earlier this week, with almost 70% showing gains at its peak.

One trader reportedly made more than $10 million, while dozens of others made seven-figure profits as volumes on BNB Chain’s decentralized exchanges reached record highs.

Only PancakeSwap incorporated trading volume of nearly $80 billion in September, the busiest month since late 2021, and just $30 billion in the first nine days of October.

But those gains quickly evaporated as liquidity drained and traders rushed to exit their positions. Several popular coins, including $HODL, $SAFU, $BROCCOLI and $PUP, have fallen between 80% and 95% since Zhao’s clarification.

The sell-off also hit Chinese-themed tokens that had dominated the recent meme rally.

Coins like 币安人生 (Binance Life) fell from a market cap of $500 million to a fraction of that in less than a day, while PALU, which rose 1,693% after a short trend on Binance Alpha, also saw huge losses.

On-chain data from Lookonchain revealed that a large trader withdrew 5,090 BNB, worth about $6.6 million, from Binance to join the rally, investing heavily in several tokens that are now deeply in the red. The wallet is currently facing unrealized losses of approximately $1.2 million.

Analysts say parts of the market were also hit by a carpet pull, with some tokens disappearing after gathering liquidity from buyers. The token HODL, a top performer in the early phase of the BNB meme wave, was among those who collapsed.

The rapid turnaround has fueled debate over sustainability in the memecoin market, with analysts warning that most short-lived tokens are built around fleeting hype rather than lasting value.

The “BNB Meme Szn,” which started as a community-driven frenzy after BNB Chain’s official

At its peak, the market capitalization was about $2.1 billion, but fell to $1.3 billion after the crash.

BNB withdraws after record run despite network milestones

BNB, BNB Chain’s native token, fell 2% in 24 hours to around $1,270, while memecoin trading on the network began to decline even as activity on the chain reached new highs.

The decline followed a sharp increase in trading volume and came despite BNB Chain Absorbing 5 trillion gas used in one day, thanks to 24 million swap transactions.

The sell-off saw BNB fall from $1,308 to $1,255 before stabilizing around $1,270. Large amounts of buying emerged between $1,255 and $1,280, but the token struggled to reclaim resistance around $1,320, leaving short-term bearish pressure intact.

The retracement comes after an explosive month-long rally that sent BNB up 45% and pushed it to the third-largest cryptocurrency by market cap, after Bitcoin and Ethereum.

On October 7, BNB hit a record high of $1,295, up 84% since the start of the year and surpassing both BTC and ETH in performance.

Technically, BNB broke above long-term diagonal resistance earlier this month, confirming a bullish structural shift.

Analysts note that the price action is now in a correction phase, with potential support around $1,100 to $1,150 for a shallow pullback or deeper support between $900 and $1,000 near the trendline and Fibonacci midzone.

Despite the short-term exhaustion, the medium-term outlook remains positive.

BNB continues to benefit from growing network usage, including the introduction of a standard gas rate of 0.05 Gwei for Binance and Trust Wallet, making on-chain operations faster and cheaper.

Analysts say if buying momentum returns in key retracement zones, BNB could resume its uptrend to new highs later this quarter.

The post BNB Meme Coins Crash to 95% After CZ Rejects ‘Endorsement’ Claims appeared first on Cryptonews.

Source link