Binance’s former CEO Changpeng Zhao (CZ) recently posted about an educational video that was uploaded by BNB Chain team member that caused an unexpected market frenzy. The video, according to CZ, was uploaded by the team for educational purposes on how to launch a meme token on the Four.Meme platform, the video unintentionally revealed the name of the test token, TST in a single frame at 1:18. This caught the eyes of the traders, which lead a surge in token’s market capitalization.
Unintended Market Impact
Once the Binance team realized their mistake, the video was swiftly taken down but the damage was already done. The token by then had already gained attraction in trading circles, specially within the Chinese crypto community KOL.
No Official Backing for TST by BNB Chain
BNB Chain representative have clarified that TST was purely a test token which was used to demonstrate on how to create and launch a meme token on the platform. There is no official backing from BNB Chain, Binance or any other affiliates.
Additionally, the private key for the creator address, which held 0.13% of the supply, had been deleted which would ensure that no further manipulation takes place from the original source.
Following the CZ tweet, the token surged over 8,000% to a market capitalization of over $30 million as per Wu Blockchain. Despite the efforts and clarification, TST continues to be actively traded.
The situation indicates how fast the crypto market can get hold on information and create opportunities, even when there is no fundamental backing.
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Source: https://www.cryptonewsz.com/bnb-chain-test-token-surges-8000/