Binance’s CZ Compensates Victims of TST & BROCCOLI Meme Coin Crash

Binance founder Changpeng Zhao Changpeng Zhao   Changpeng Zhao, popularly known as CZ, is a Chinese-Canadian businessman. He founded Binance, the biggest cryptocurrency exchange in the world based on trading volume. CZ came across Bitcoin (BTC) in 2013 from a friend.   Quick Facts   Full Name Changpeng Zhao Birth  1977 in Lianyungang, Jiangsu, China Nationality Chinese-Canadian, UAE Education BSc. from McGill University Marital Status Married to Yang Weiqing Famous For Binance, Advocate for decentralized finance, blockchain tech. Net Worth $59.4B (refer for realtime)   Before starting Binance in 2017, he was the Head of Development at Blockchain.info and the Chief Technology Officer (CTO) at OKCoin. Under CZ, Binance launched an ICO (Initial Coin Offering) that raised $15 million and rapidly became the largest exchange within months.   To improve trading options, the firm introduced Binance Smart Chain (BSC), Binance Labs, Binance Academy, Binance Launchpad, and other blockchain-based solutions. CZ has influenced the global adoption of crypto by offering regulatory compliance, DeFi solutions, and infrastructure for digital assets.   CZ’s Career Timeline   Tokyo Stock Exchange (2001–2003) – Developed trading systems for financial institutions. Bloomberg Tradebook (2003–2005) – Worked as a software developer for high-frequency trading systems. Fusion Systems (2005–2013) – Co-founded this financial technology firm specializing in ultra-low-latency trading solutions. Blockchain.info (2013–2014) – Served as Head of Development, working with early Bitcoin adopters like Roger Ver and Ben Reeves. OKCoin (2014–2015) – Worked as Chief Technology Officer (CTO) at one of the largest fiat-to-crypto exchanges at the time. Binance (2017–2023) – Founded Binance and led it to become the world's largest cryptocurrency exchange before stepping down as CEO in 2023.   Awards and Recognizations of CZ   List of achievements Year Bloomberg 50 – Most Influential People in Finance 2021 Forbes Crypto Rich List – Billionaire Status 2022 Top 10 Most Influential People in Crypto (CoinDesk) 2022 Binance – World’s Largest Crypto Exchange by Volume 2018-23   There were regulatory issues in some countries about crypto. However, CZ continued to support decentralization, financial freedom, and innovation in the cryptocurrency industry. After reaching an agreement with U.S. regulators over compliance violations, in 2023, he resigned as CEO of Binance.   Useful Links To Connect With CZ   X (formerly Twiter) https://twitter.com/cz_binance? Instagram CZ_Binance (@changpengzhao)  LinkedIn Changpeng Zhao - Binance | LinkedIn     EntrepreneurInvestorChief Executive Officer (CZ) has stepped in to help investors who lost money in the latest meme coin frenzy. His announcement to donate funds to affected traders has reignited discussions about the risks of speculation, highlighting the boom-and-bust cycle that defines the crypto market.

What Happened with TST and BROCCOLI?

The chaos began when CZ shared an educational video about the BNB Chain, featuring a token called Test (TST) as an example. This led to the creation of a TST meme coin, which saw a surge in trading despite CZ having no direct involvement. Meanwhile, another meme coin named BROCCOLI took off after CZ mentioned his dog’s name, fueling speculation.

Initially, these tokens experienced 50% gains—BROCCOLI, for example, jumped 160% at launch. However, the rally was short-lived. Both tokens crashed by more than 60-80% in just days, triggering panic among traders who had jumped in hoping for quick profits. 

CZ’s Rescue Plan—But No Endorsements

CZ announced that he would donate funds to affected investors, encouraging others to contribute as well. He also personally donated 150 BNB (around $100,000) to a university student who had already put $50,000 toward helping victims of another failed crypto project, Libra.

However, he made it clear that his donations do not mean he supports these tokens.

“I won’t be keeping a satoshi of it. Will donate it away, most likely to people who had a loss on TST or some of the Broccolis,” he wrote on X.

He also warned investors against reading too much into his actions, reminding them that speculation often leads to losses. 

Was This Just a PR Move?

CZ recently completed his four-month prison sentence on September 27, 2024, and is now working to rebuild his public image. His decision to compensate affected investors could be a strategy to shift the focus away from past controversies.

At the same time, CZ has been focusing on new investments and launching his digital education platform, Giggle Academy, which aims to teach newcomers about crypto investing.

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A Reminder About Meme Coin Risks

CZ’s response highlights the unpredictability of meme coins. He also pointed to the LIBRA token, which surged and then collapsed after being linked to Argentina’s President, Javier Milei.

Crypto expert Clayton Lowery warns that many new tokens are created just to make quick money before disappearing. Data from Chainalysis shows that in 2024, over 400,000 tokens were launched in just one month, but only 1.7% are still actively traded.

This means most tokens either fail or are abandoned after the hype fades. Lowery also points out that 94% of suspected pump-and-dump tokens were scams where creators took the money and ran, while 6% were manipulated by insiders. 

All in All? Caution Is Key

While many meme coins are driven by hype, some projects aim to build real value through community engagement and useful features. Experts advise investors to research projects carefully and look for tokens with real-world applications, rather than chasing quick profits.

The cycle repeats: hype, surge, crash—who will learn before it happens again?