BNB Memecoins Plunge 95% After CZ Denies Endorsements

- Memecoin values plummeted after CZ clarified his tweets are not trading signals. - The downturn reversed a profitable trading frenzy across BNB Chain and PancakeSwap. BNB-based memecoins experienced a dramatic crash on October 9, 2025, with token values plunging between 60% and 95%. This sharp sell-off followed a social media clarification from Binance founder Changpeng "CZ" Zhao. On October 9, The Block reported that Zhao stated people should not interpret his posts as endorsements or trading signals. The crash marks a sudden reversal from a recent trading frenzy, during which more than 100,000 traders drove significant activity on BNB Chain and PancakeSwap by investing in new BNB-based memecoins. Before the downturn, approximately 70% of these traders were in profit, with one reportedly making over $10 million and hundreds of others securing six- and seven-figure gains. Binance founder Changpeng 'CZ' Zhao issued the clarification on social media, responding to a user who warned traders against interpreting his posts as financial advice. On October 9, he stated in a post, “Now I just tweet normally, any overlap to memes is coincidental.” His clarification triggered swift market reactions, leading to dramatic sell-offs across PancakeSwap, the leading decentralized exchange on the BNB Chain. As a result, some tokens lost over 95% of their market capitalization as liquidity evaporated in a single day. The trading frenzy had significantly boosted market activity in recent weeks. PancakeSwap processed nearly $80 billion in trading volume in September, making it the exchange's busiest month since November 2021. This momentum carried into early October as traders executed $30 billion in trades within the first nine days. The surge also contributed to a brief rally in Binance’s native token, BNB, which reached a record high of $1,350 before pulling back. According to CoinMarketCap on October 9, Binance Coin (BNB) was trading at $1,235.93 as of 17:09 UTC, and its 24-hour volume had decreased by 5.108%.