- Binance’s CZ disowned the CZSTATUE token after its 27,000% surge ended in a sharp collapse.
- Nansen revealed that one wallet held 15% of the supply, signaling possible insider manipulation risks.
- Zhao prepares a defamation lawsuit against Senator Elizabeth Warren over corruption remarks.
Binance founder Changpeng “CZ” Zhao has rejected any connection to a new token and statue project made in his name. The token, CZSTATUE, gained over 27,000% in value within hours of its launch before nearly losing all its value.
On X (formerly Twitter), Zhao clarified that he was not involved, urging people not to buy it.
“While I want to appreciate the gesture, the fact that there is a meme coin associated with this means the creator probably just wanted to make a quick buck off an interaction from me,” he wrote. “This is something I don’t appreciate. Don’t buy the meme.”
Despite his warning, trading volume exploded, hitting $1.2 billion within 24 hours. The token’s market cap briefly touched $6.8 million before plunging to almost nothing.
The Statue That Sparked a Meme Storm
The frenzy began when a 4-meter gold-plated statue of Zhao appeared outside the U.S. Capitol in Washington, D.C. The sculpture, showing his trademark “Ignore FUD” gesture, was crowdfunded by four anonymous supporters who raised $50,000.
The display occurred at a time when BNB Chain meme tokens were experiencing a surge in speculative activity. Several tokens used Binance’s CZ image or name, while others tied themselves to his education charity, Giggle Academy, which has raised over $5.5 million through trading fees.
The statue’s debut coincided with the launch of the CZSTATUE token. Although promoted as a tribute, the timing and marketing links caused suspicion. Binance later confirmed it had no role in the statue or the token.
Red Flags in the Token’s Structure
Analytics firm Nansen reported that a single new wallet controlled more than 15% of the token supply. Such a pattern often points to insider manipulation or “honeypot” setups, where buyers can purchase but cannot sell.
Within hours of its peak, the coin’s value dropped 99%, leaving over 1,100 holders with almost nothing. Still, trading persisted briefly, with the market cap climbing again to about $2 million as short-term traders continued to speculate.
Other BNB Chain meme coins also saw wild swings this month. One example, GIGGLE, linked to Binance’s CZ charity work, surged 700% earlier in October before cooling off.
Binance’s CZ Faces Broader Public Spotlight
Zhao’s statement followed his recent presidential pardon by Donald Trump after serving a four-month prison term in 2024 for violating the Bank Secrecy Act. His reappearance has brought renewed focus on regulatory battles and public perception.
Reports also indicate that Zhao plans to pursue a defamation lawsuit against Senator Elizabeth Warren, who accused him of corruption and illegal funding activities. Sources say Zhao’s legal team, led by Teresa Goody Guillen, a former SEC attorney, is preparing to act if Warren does not retract her claims.
Binance’s CZ to File Defamation Lawsuit Against Senator Warren (Source: X)
To sum up, the Golden Statue episode shows how a single post from Binance’s CZ can trigger massive price swings and investor reactions. It underscores the danger of speculative hype in crypto markets, where fame can create—and erase—fortunes in a single day.
