CZ Sparks Memecoin Craze with Broccoli Announcement

Changpeng “CZ” Zhao, the founder and former CEO of Binance, set off a memecoin frenzy when he shared his dog’s name—Broccoli—on X.

This revelation triggered a swift explosion of Broccoli-themed memecoins, notably on Solana’s Pump.fun and BNB Smart Chain’s Four.Meme. Some of these coins quickly soared to multi-billion-dollar market caps before plummeting just as rapidly.

The Rise of Broccoli Memecoins

Mere minutes after CZ’s post, eager traders launched hundreds of memecoins inspired by his Belgian Malinois, Broccoli. One of these coins on Solana briefly hit an astonishing $1.5 billion valuation.

On BSC, more than 300 Broccoli-themed tokens surfaced, driving further speculation. This scenario was reminiscent of previous occasions where influential figures unintentionally triggered memecoin crazes, such as the incident involving Donald Trump’s memecoin in January.

Amid the turmoil, CZ made it clear he was not behind a Broccoli memecoin launch:

“I am just posting my dog’s picture and name. I am NOT issuing a meme coin myself. It’s up to the community to do that (or not).”

Reactions from the Market

Insider trading significantly impacted the Broccoli memecoin wave. Blockchain data reveals that wallet 0x392eb created a Broccoli-themed token right after CZ’s tweet, minting over 110 million tokens for itself. It sold the entire lot within minutes, earning $6.5 million in profits. Latecomers suffered significant losses as the memecoins' value plunged. 

While some saw CZ’s role as a playful social experiment, others criticized the situation for facilitating pump-and-dump schemes that largely benefit insiders. Despite CZ’s neutral position, his influence alone was enough to drive traders into a frenzy.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice