CZ Speaks on TST Memecoin Surge: "I Don’t Support or Oppose"
Key Points: TST Memecoin Surge on BNB Chain after CZ mentioned it, hitting $500M market cap post-Binance listing. CZ clarifies he neither supports nor opposes memecoins but acknowledges their cultural and speculative significance. TST Memecoin Surge sparks debate as Binance lists it, while CZ explains his stance on memecoins and market trends. TST Memecoin Surge After CZ’s Mention On February 6, TST Memecoin Surge took the crypto market by storm after former Binance CEO Changpeng Zhao (CZ) referenced it in an X post. The memecoin skyrocketed nearly 100x, peaking at a $52M market cap. A day later, CZ suggested a logo change to avoid copyright issues, unintentionally fueling further growth. This pushed TST Memecoin Surge past $190M before correcting to over $100M. By February 9, Binance officially listed TST, propelling its valuation beyond $500M, and solidifying its position as a dominant memecoin. However, within 24 hours, it retraced over 60%, stabilizing at a $181M market cap. 4H chart of TST/USDT pair, screenshot on Four.Meme at 06:30 PM on February 10, 2025Read more: BNB Chain Plans to Tackle MEV Issues After Community Vote CZ’s Response: Neither Support nor Opposition Following the TST Memecoin Surge, CZ addressed the frenzy, stating he has never endorsed TST nor invested in memecoins. Ironically, each clarification from him only fueled the token’s virality. He emphasized: “I’ve never bought any memecoin, but that doesn’t mean I’m against them. I also don’t buy supercars, art, or NFTs, but I don’t oppose their existence.” CZ outlined three reasons for memecoins’ strong appeal: Regulatory uncertainty pushes developers towards them: Over the past four years, regulators, especially the SEC, have tightened their grip on utility tokens, alleging that they are unregistered securities, leaving many projects facing lengthy legal battles, CZ said. Unlike utility tokens, which are used for specific purposes such as paying transaction fees or staking, memecoins do not appear to have any practical value, making them “immune” to legal issues. Extreme speculative potential: “Assets with a clear value are generally less subject to speculation, as their value is stable. In contrast, memecoins can increase dozens, even hundreds of times in just a few days” – CZ said. Memecoin is a cultural phenomenon in the crypto market: “Memecoin is not just a speculative asset, it is a cultural phenomenon. If you criticize them, you will probably get a strong backlash from the community” – CZ. The Binance Listing Process & Market Manipulation Risks Alongside the TST Memecoin Surge, CZ highlighted flaws in Binance’s listing process. He pointed out that the 4-hour delay between Binance’s TST announcement and trading enabled excessive price speculation on DEXs, leading to potential pump-and-dump scenarios. Some critics argue CEXs should adopt a more automated listing model like DEXs to prevent manipulation. CZ acknowledged this perspective but distanced himself from Binance’s current decisions, stating: “I tend to agree. I think CEX should list (almost) everything automatically, just like DEX. But I am not running a CEX anymore.” Screenshot of Changpeng Zhao’s (CZ) response to a user’s opinion that CEX exchanges need to learn how DEX exchanges work to avoid price manipulation before listing.Recently, Binance’s listing process has become a point of controversy in the crypto community. Binance has long been considered an exchange with strict project approval standards, but in the past few months, the world’s largest exchange has continuously listed memecoins, raising many questions about the exchange’s strategy. In September 2024, Binance caused controversy when it listed 3 memecoins BabyDoge, TURBO, and NEIRO in just one day, causing the community to question Binance’s listing criteria. However, if we look at the current market trends, exchanges are forced to race to list high-demand tokens to attract users. This makes the appearance of memecoins on Binance almost inevitable because, despite their highly speculative nature, they are still the focus of attracting strong cash flows from investors. In another development, on the morning of February 10, the President of the Central African Republic (CAR), Faustin-Archange Touadéra, surprised everyone by announcing the launch of the country’s official memecoin, with the token code CAR. After just a few hours of trading, CAR’s capitalization reached the $900 million mark at one point, attracting great attention from the crypto community. The memecoin hype, along with debates on Binance’s listing strategy, reflects broader trends in crypto, where speculation and market dynamics continue to shape trading behavior. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.