Changpeng Zhao CZ, former Binance CEO is being scrutinized after the appearance of memecoins named Broccoli.
On Feb. 13, Zhao revealed his Belgian Malinois dog’s name and photo after multiple requests from community members.
Zhao has assured that he will not be launching a token with a Broccoli theme himself. However, he suggested trading of successful ones. The BNB Foundation, he suggested, could also support Broccoli-themed tokens that were promising.
Zhao, stated
“I am just posting my dog’s picture and name. I am NOT issuing a meme coin myself. It’s up to the community to do that (or not). I will likely interact with a few of the more popular meme coins on BNB Chain (BSC).”
Within hours, multiple Broccoli-branded tokens appeared on BNB Chain’s Four.Meme launchpad and Solana-based Pump.Fun. These tokens are often scams. The creators pull rug-pulls and leave investors with a loss.
Zhao, say critics, should have seen this coming. Given his influence, disclosing his dog’s details made it easy for opportunists to exploit the hype. Many prominent crypto figures have had their names and affiliations associated with memecoins, but they rarely interact or endorse the coins.
Zhao has been accused of using memecoin fever to drive BNB Smart Chain activity. Crypto traders like Crypto Chanshi have also made the same accusation.
Zhao has defended this position. He said he did not have any direct involvement in the project and that he hoped for the success of the most community-driven memcoin.
Binance’s founder has also acknowledged that, while he wanted a boost in on-chain participation, he didn’t intend to manage or launch a memecoin. Zhao admitted that he had handled the situation better.
The writer wrote:
“Yes, I wanted to see more activity on BSC. And I did not want to get involved in issuing/running a meme coin, as I have zero experience. And I thought memes were community-driven.”
Broccoli frenzy makes overnight millionaires
While most investors lost money, some traders were able to make substantial gains from the Broccoli Memecoin Craze.
Lookonchain, a blockchain-analytics firm, claims that leveraging the hype helped assemble nearly $28,000,000. The trader bought several Broccoli memecoins at top prices, then spread them out across multiple wallets. He sold the coins for maximum price to earn a huge windfall.
Lookonchain identified an opportunistic trader who operated from wallet 0x392eb and made $7 million from memecoin. This trader created a token named “memecoin” for less than $1,000. “CZ’s Dog (Broccoli)” moments after Zhao’s tweet.
Andre Cronje is a veteran in the industry and has criticized so-called “winners” for their theft of money rather than trading strategically. He claimed that the launch of a coin only to sell it off on unwitting buyers was not a valid profit.
He said that this is a dark side to crypto-speculation, in which traders are knowingly taking high risks, sometimes at other people’s expense.
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