In the fast-moving and often unpredictable world of cryptocurrency, few figures have sparked as much debate as Changpeng "CZ" Zhao - the founder and former CEO of Binance, the world’s largest crypto exchange.
Starting in early October 2025, a wave of frustration and anger has erupted across X (formerly Twitter), directed at CZ. The catalyst? A sharp decline in the value of meme coins on the BNB Chain, combined with long-standing accusations of market manipulation, poor transparency, and other controversial actions involving Binance.
What Really Happened? Unraveling the Causes Behind the Price Fall in Crypto
This article compiles information from recent web sources and X (formerly Twitter) posts up to October 10, 2025, to provide a clear and well-supported explanation. It examines reports of a rapid rise - followed by a sharp decline - in meme coin prices, largely driven by fear, uncertainty, and doubt (FUD) surrounding Binance's new initiatives, such as the "Binance Alpha" experimental listing zone and the "Meme Rush" launchpad.
While BNB itself experienced only a modest 2% drop, many meme coins on the BNB Chain crashed by up to 95%, wiping out hundreds of millions in market value and leaving countless retail investors at a loss. Critics are blaming CZ and Binance for market manipulation, poor communication, and self-serving actions. However, the real picture appears to be a mix of excessive hype, low liquidity, and the rapid spread of FUD - rather than direct malicious intent.
How Meme Coins Exploded on BNB Chain: The Story Behind the $80B Trading Frenzy
The surge began in late September and early October 2025, when the BNB Chain experienced a massive rally known online as "Meme Szn."
During this period, meme coins - typically low-utility tokens powered by social media hype - saw explosive growth. Trading volumes on decentralized exchanges like PancakeSwap hit record highs, with nearly $80 billion processed in September, and another $30 billion in just the first nine days of October.
Coins such as $HODL, $SAFU, $BROCCOLI, $PUP, and Chinese-themed tokens like Binance Life and PALU skyrocketed, with some surging by over 1,693% after being listed on Binance Alpha, Binance’s experimental platform for launching new tokens.
More than 100,000 on-chain traders joined the wave. At its peak, nearly 70% of them were in profit, according to data from Bubblemaps.
The Crash Begins: How FUD and Rumors Triggered a Meme Coin Meltdown
However, the excitement didn’t last long. On October 9, 2025, the meme coin market crashed hard with prices falling between 60% and 95% in less than 24 hours. Around $800 million in market value was wiped out almost overnight.
So, what caused this sudden collapse?
A mix of FUD (fear, uncertainty, and doubt) surrounding Binance’s new "Meme Rush" launchpad - an experimental platform for early-stage meme coins, similar to Pump.fun, and connected with Binance Wallet. Adding fuel to the panic were rumors that Meme Rush would require KYC (Know Your Customer) verification. This would mean users from regions like the U.S. and Europe, where regulations are strict, might be excluded from participating.
As the rumors spread, fear took over. Many traders began panic-selling across the BNB Chain ecosystem, worried about losing access and facing low liquidity.
CZ Responds to the Crash: Clarification, Controversy, and a Security Breach
On October 9, CZ (Changpeng Zhao) finally responded to the chaos with a tweet. He said he had been in meetings in Bahrain and was unaware of the market turmoil until later.
CZ blamed the crash - calling it a "blood bath" - on false rumors that Binance Alpha would no longer list certain meme coins in the future. Although this rumor was quickly debunked, it had already caused major damage across the market. He also clarified that he fully supports decentralized self - custody wallets for meme coins and reminded users to manage their risk properly.
Earlier, CZ had rejected claims that his tweets were meant to promote specific tokens. He wrote:
"My tweets are not endorsements. Now I just tweet normally - any overlap with meme coins is purely coincidental."
This clarification, however, broke the hype. Many tokens had gained massive value simply because they were associated with CZ or Binance, and once that link was questioned, prices began to drop even faster. Adding to the tension, on October 1, the official BNB Chain X account was hacked and used to promote a phishing scam airdrop. CZ confirmed the breach and warned users. Still, this incident may have further damaged trust in the BNB ecosystem’s security and credibility.
Why Are Users Angry? Understanding the Backlash Against CZ and Binance
The growing anger toward CZ comes from a mix of heavy financial losses and a strong sense of betrayal among users. Many people on X (formerly Twitter) lost large amounts of money as meme coins on the BNB Chain crashed. One example: a trader withdrew 5,090 BNB (worth about $6.6 million) from Binance to invest - and ended up with over $1.2 million in unrealized losses.
Some users accuse Binance of acting out of desperation, running pump-and-dump schemes, and using scam profits to inflate the value of BNB. Others have even called CZ a “scammer”, claiming he sold user-held assets like BTC and ETH to push up BNB’s price—creating artificial sell pressure on the rest of the market.
Many believe that CZ’s clarifications came too late, allowing FUD to spread unchecked. One user pointed out that KYC rumors tied to the new launchpad were the main reason behind the sudden crash - since they potentially excluded global users and weakened the BNB Smart Chain (BSC) ecosystem.
On a deeper level, some of this anger is tied to CZ's past controversies - including his 2024 release from prison after pleading guilty to money laundering, previous SEC lawsuits (dropped in May 2025), and allegations that Binance traded against its own users using an internal desk.
Because of all this, some users now refer to CZ as a “convicted felon who profits from others' losses.”
Who’s Really to Blame? Breaking Down the Responsibility for the Crash
Responsibility for the crash doesn’t fall on just one person or group - it's spread across multiple parties. First, FUD spreaders on X played a big role. They amplified unverified rumors about KYC requirements for Meme Rush, taking advantage of how reactive the crypto community can be.
But Binance and CZ also share part of the blame. They weren’t clear about how the Meme Rush and Alpha platforms would work, which created confusion. Even though CZ denied promoting any specific tokens and said he supports decentralization, his high profile makes his words highly influential - sometimes causing hype without meaning to.
The meme coin developers aren’t off the hook either. Many of them ran rug pulls or launched coins with low liquidity, which couldn’t handle large - scale selling. On-chain data shows most of these tokens lacked depth, making them fragile.
Finally, traders themselves share some responsibility. Many jumped in without proper risk management, relying too much on hype - something CZ had warned against earlier.
What Does This Mean for Crypto and Binance? Long-Term Impact & Market Outlook
The recent crash exposed some of the core weaknesses in the crypto market - especially in the meme coin sector, where price movements are often driven by hype and speculation, not real value. These extreme ups and downs may cause some people to lose trust in crypto, reinforcing the idea that it’s just a “casino” for gamblers, not a serious financial system. But despite the chaos, the broader market remains strong.
BNB has climbed 45% in the past month, outperforming Bitcoin (BTC) and Ethereum (ETH). Gas usage hit a record - over 5 trillion transactions in a single day. Even Google's AI predicts that BNB could reach $2,000 by the end of the year.
Will Binance Suffer?
In the short term, Binance may face reputational damage. Some users are calling for boycotts, labeling it a "thug platform." Previous controversies - like lawsuits claiming Binance aided October 7 attacks, or avoided sanctions - still create doubt. Yet, Binance continues to push forward with innovation. New features like the Meme Rush launchpad and Alpha airdrops (e.g., KGeN requiring 210 Alpha Points) show the company is still trying to stay ahead in the market.
Confusion Still Remains
However, unclear rules and poor communication around these new features (like airdrop requirements) have created user frustration. Some users feel left out or confused - which hurts trust. Even though there are reports of market share loss, Binance remains one of the strongest players in the crypto space.
Is Binance Manipulating the Market? Examining the Claims and Facts
There have been many claims that Binance is manipulating the crypto market. Some users say that Binance sells Bitcoin (BTC) and Ethereum (ETH) to artificially boost the price of BNB. This, they argue, creates selling pressure on other coins while keeping BNB’s price stable. For example, recently BTC and BNB both dropped by about 10%, but many other coins fell by nearly 20%.
Why Did BNB’s Price Drop So Suddenly?
BNB’s "drastic" drop was actually a small 2% fall to $1,270 on October 9, following a 45% rise to $1,330 on October 7. This surge was driven by the growth of the BNB ecosystem.
The price dip was partly due to a broader crash in meme coins, but buying between $1,255 and $1,280 suggests that investors are taking advantage of the dip. Overall, BNB has increased by 600% since the bear market bottom and aims to reach a target price of $1,980.
Why Did Many Coins on the BNB Chain Drop?
Coins on the BNB Chain, particularly meme coins, dropped due to fear and uncertainty about KYC requirements for Meme Rush and Alpha, low liquidity, and fading hype.
Rug pulls and over-speculation made the situation worse, with some tokens like PALU crashing after the initial hype. A hack earlier in October also contributed to the uncertainty.
The Real Truth
The "real truth" is that the meme sector in crypto heavily relies on hype but can quickly collapse when faced with fear and weak fundamentals.
CZ’s role was more about responding to misinformation than causing it.
He clarified the misunderstandings, but his influence amplified the effects. While claims of manipulation lack new evidence, past issues continue to fuel distrust. Binance’s innovations, like Alpha, aim to reshape meme trading, but a lack of transparency invites criticism.
In the end, this event serves as a reminder for users to manage their risks, verify information, and focus on long-term growth.
As CZ said, “Keep building!”
What’s Next for BNB Chain, Binance, and Meme Coins?
The BNB Chain crash and the backlash against CZ highlight the volatile and fast-changing nature of crypto — where hype can build quickly, but so can fear and doubt. As investors and traders navigate these turbulent waters, one thing is clear: staying informed, managing risks, and understanding the technology behind the tokens are more important than ever.
Will Binance regain trust and rebuild its image? Can meme coins find sustainable growth beyond the hype? Only time will tell.
What do you think?
Share your thoughts below or join the conversation on X (formerly Twitter) with AuronXBT
