A test token developed by the BNB Chain team has excited several traders, quickly leading to a market cap of about $35 million.
Binance co-founder Changpeng Zhao acknowledged the situation, citing that the memecoin was only created for a tutorial video but gained more traffic traction than the team anticipated.
The implications of these trends on BNB coin remain a speculation in the ecosystem.
BNB Chain and Growing Memecoin Activities
The token was in a step-by-step video that educated people on creating a memecoin on the BNB Chain launchpad known as Four.Meme.
Noteworthy, TST, the name of the memecoin, was not revealed until (1:18) in the training video.
As soon as this information was public, the Chinese crypto community plunged into the market.
Their trading activity boosted the test token, which is evident in its market cap.
The attention on the coin could be attributed to the returning hype on memecoins.
Such meteoric rise and price volatility modeled related traits in the memecoin niche.
This also coincides with the period when the sector is recovering from the subtle probe by different action groups worldwide.
A few months ago, Solana (SOL)-based memecoin launchpad Pump.Fun, was forced to suspend its livestream feature after a wave of troubling content surfaced online.
This includes viral clips showcasing violent threats and other offensive materials.
More recently, the platform came under regulators’ radar because of a rapid surge in trading volume.
Some experts warned that such platforms carry risks to retail investors without regulatory oversight.
The conversations about the TST token have significantly changed the atmosphere surrounding the memecoin niche over the past few weeks.
Changpeng Zhao’s Subtle Endorsements
According to CZ, the training video featuring TST was deleted immediately when a team member realized what had happened.
He also removed the private key for the creator address used in the tutorial, which holds 0.13% of the token.
For clarity’s sake, the former Binance executive noted that TST is a test token, not an official crypto asset by the BNB Chain.
As a result, no member of the BNB Chain team holds any of that token.
Zhao claimed his post on X was not an endorsement for the token. At the same time, he recommended that the tutorial video be reposted.
Many noted that this suggestion bears the undertone of a subtle endorsement from the former Binance CEO.
He even ended his X post with the phrase “Happy Trading.” The TST market cap has since plummeted to lower levels.
When CZ made his post, the market cap had reached $494,000. Only a few weeks ago, Changpeng Zhao claimed that memecoins are getting “a little weird.”
He also said he is not against the growing niche, although his comment suggested otherwise. His latest take on TST supports his initial claim.
BNB Price and ATH play
Meanwhile, these conversations and subtle endorsements may have triggered a price increase for BNB.
BNB price traded at $577.06 at the time of this writing, corresponding with a 1.83% increase within the last 24 hours.
Similarly, its market cap has exceeded $82 billion, making it the sixth-largest cryptocurrency by this metric.
Notably, the tide will likely change for BNB in the mid-term, judging by related trends around Solana.
The memecoin activities on Solana are through Pump.Fun helped push the coin to multiple ATHs this bull cycle.
Earlier this year, Solana’s price skyrocketed to $294 amid the launch of TRUMP and MELANIA.
With the hype that trailed TST, innovators may choose to explore BNB Chain for memecoin launches.
Ultimately, the tide may shift in favor of BNB price, helping it reclaim the all-time high of $793.35.
The post Binance Coin (BNB) Price Eyes Solana-Like Breakout Amid Memecoin Hype Return appeared first on The Coin Republic.
The Coin Republic – Read More