Changpeng Zhao (CZ), the founder and former CEO of Binance, is at the center of a renewed controversy following viral accusations on social media. An X post by user NoLimitGains alleged that CZ has been involved in orchestrating “pump-and-dump” schemes with various small, illiquid tokens that subsequently experienced significant crashes.
The post, which gained considerable attention, claimed that several memecoins saw their values plummet by as much as 98% shortly after being listed on Binance Alpha or other associated platforms. The user accused CZ of facilitating a pattern of price manipulation that allegedly caused hundreds of millions in losses for unsuspecting investors.
Despite the serious nature of these allegations, there has been no presented evidence of formal investigations or complaints regarding CZ”s actions. The claims appear to be primarily based on anecdotal observations rather than concrete facts, as Binance and CZ have not issued any public statements addressing these accusations.
The memecoin market is characterized by its volatility and low liquidity, which can lead to dramatic price fluctuations. Recent data from CoinGecko indicated that the memecoin market cap increased by 10.5% to $48.3 billion, alongside a trading volume of $7.3 billion in just 24 hours. Such rapid changes can contribute to the types of price collapses described by NoLimitGains, particularly following speculative trading bursts.
While CZ has distanced himself from daily operations of Binance since a legal settlement in the U.S. in 2024, where he pleaded guilty to violations regarding anti-money laundering controls, his influence remains strong in the cryptocurrency space. A mere hint of a listing on Binance or an association with Binance Alpha can trigger a rush of investment into thinly traded tokens.
This ongoing situation underscores a long-standing issue within the cryptocurrency market: the interplay between social media narratives and the actual market dynamics. As accusations swirl, the absence of regulatory intervention or legal scrutiny means that for now, these claims are primarily speculation rather than substantiated allegations.
As the crypto community watches closely, the real test will be whether regulators decide to take action, or if this episode fades into the background noise of the ever-volatile crypto landscape.
