Binance founder Changpeng Zhao has announced his decision to permanently abandon his widely known public wallet after a routine cleanup escalated into a $30 million market surge for a little-
Binance founder Changpeng Zhao has announced his decision to permanently abandon his widely known public wallet after a routine cleanup escalated into a $30 million market surge for a little-known meme coin. The episode, which echoed previous instances of on-chain speculation, led Zhao to move all legitimate funds to his educational foundation before declaring the address defunct.
Earlier in the day, blockchain analytics platform Lookonchain observed that Zhao had burned 4,444 tokens from each of two third-party projects using his wallet on the BNB Chain. One of the assets involved was an unofficial clone. Some market participants immediately interpreted these burns as significant on-chain signals, triggering a cascade of buying activity.
The market capitalization for the previously dormant meme coin jumped from $40,000 to $30 million within hours. Its price soared by more than 30,000%. Meanwhile, the original version of the token, which trades on Binance Alpha, showed no significant movement during the frenzy.
The streak of sudden gains followed rapid speculation after blockchain trackers noticed Changpeng Zhao clearing tokens from his wallet, with trading volumes spiking despite warnings that the coins were unofficial clones.
Many observers drew parallels with the Shiba Inu rally of 2021. In that episode, Ethereum co-founder Vitalik Buterin burned SHIB tokens sent to him without his consent, which triggered a supply shortage and explosive gains for $SHIB. Similarly, project creators attempted to attract attention by sending Zhao unsolicited meme tokens, hoping to trigger a comparable response and price rally.
Changpeng Zhao publicly responded, urging the community to avoid reading too much into his actions. He clarified that he was simply using the Trust Wallet application to remove spam tokens. These unwanted tokens were cluttering his balance and making it difficult to view legitimate holdings. However, efforts to manually burn the tokens inadvertently magnified attention on the wallet, illustrating the “Streisand effect”: the more he tried to dispose of these assets, the more attention—and, consequently, speculative activity—they generated.
Mini dictionary: Streisand effect, a phenomenon where attempts to suppress information or actions backfire, resulting in even greater public attention.
Zhao acknowledged that the situation was spiraling out of control. As he noted, every visible transaction sparked renewed speculation, and more spam tokens arrived at an accelerating rate: “The more I burn, the more people will send meme coins to the address.”
To halt ongoing manipulation using his name and public address, Zhao decided to transfer all legitimate BNB and related token holdings from the wallet to Giggle Academy, his educational charity initiative. Changpeng Zhao is best known as the founder of Binance, one of the world’s largest cryptocurrency exchanges, and has recently focused on philanthropic projects through his foundation.
Wallet EventBefore CZ ActionAfter CZ ActionClone token market cap$40,000$30 millionLegitimate tokensIn walletDonated to Giggle AcademyClone token market cap (post-announcement)$30 million$5.26 millionFrom now on, Zhao’s former wallet address will serve as a classic “burn address.” Any tokens sent to it in the future will remain inaccessible.
To eliminate confusion and speculation, Changpeng Zhao has committed to never using the wallet again, locking any future unsolicited tokens away from circulation.
In the immediate aftermath of Zhao’s announcement, the inflated price of the meme coin collapsed. Market data indicates the asset’s capitalization dropped sharply to $5.26 million as panic selling took hold.
The post Binance founder CZ abandons public wallet after $30 million meme coin frenzy appeared first on COINTURK NEWS.
