- TST’s accidental rise shows the volatile nature of meme coins and speculative trading.
- Early traders capitalized on TST’s hype, making significant profits amid volatility.
- CZ’s indirect involvement fueled TST’s market frenzy, raising ethical concerns.
A strange event in the crypto market has raised concerns on the ethics of token launches, with Binance’s founder, Changpeng ‘CZ’ Zhao, indirectly fueling a new meme token frenzy. TST, a test token initially created for an educational video by the BNB Chain team, accidentally caught the attention of traders.
Despite being a simple demonstration, the token skyrocketed in value, reaching a market cap of over $52 million. The incident highlights the unpredictable nature of meme coins and raises questions about whether the market is entering another speculative phase reminiscent of past pump-and-dump cycles.
From Tutorial to Trading Frenzy
TST was never intended to be a publicly traded asset. It appeared briefly in an educational video designed to show users how to create a meme token on the four.meme platform. However, sharp-eyed traders spotted the token’s name in the footage, leading to speculative buying.
Upon realizing the exposure, the BNB Chain team deleted the video. However, the damage was already done. The crypto community quickly seized on TST, and liquidity began to pour in, turning the test asset into a fully tradable token.
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Chinese crypto influencers further amplified the token’s popularity. Their endorsements fueled a wave of speculation, driving the market cap and trading volume higher.
Although Binance did not officially support TST, its perceived connection to the exchange contributed to the buying frenzy. Consequently, traders saw TST as a stealth launch, elevating it to cult status in meme coin circles.
Early Investors Cash In
TST’s rapid rise led to significant profits for early investors. Initially valued at under $500,000, the token quickly surpassed a fully diluted valuation of $26 million. Early traders, known as ‘snipers,’ capitalized on the hype, making substantial gains.
One trader earned $303,600, while another secured $258,200 in profits. These rapid gains reflect the volatile and speculative nature of the meme coin market.
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Additionally, TST’s popularity led to its listing on PancakeSwap, a decentralized exchange (DEX) on the BNB Smart Chain. This increased liquidity further, reaching $3.3 million. Soon after, the token was listed on MEXC, where it traded between $0.02 and $0.04, adding another layer of credibility to its unexpected success.
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