Binance Denies Trump Stablecoin Ties as Market Reacts to GIGGLE and ASTER Volatility

Teng distances Binance from Trump-linked USD1, CZ-backed tokens face turbulence, and Wintermute rebuts Binance lawsuit rumors

Binance’s chief executive Richard Teng publicly denied that the exchange had any involvement in promoting or facilitating transactions involving USD1, the stablecoin associated with Donald Trump’s family company, World Liberty Financial. Teng said the exchange “didn’t partake in that decision,” referring to a $2 billion deal made by an Abu Dhabi fund that allegedly used USD1 in its operations with Binance. 

The remarks came as market observers continued to link the transaction and the stablecoin’s circulation to Trump’s October 23 pardon of former Binance CEO Changpeng Zhao. Teng emphasized that Binance had no authority over the investor’s choice of currency, calling the claims “misinformed speculation.” President Donald Trump also defended his pardon of CZ, claiming he “doesn’t know who he is” despite granting clemency in October.

Market chatter intensified as the GIGGLE token—mistakenly associated with CZ’s Giggle Academy—saw a roller-coaster week. The educational nonprofit clarified that it never launched or endorsed the token, citing a statement by CZ saying, “The Giggle memecoin is not an official coin launched by Giggle Academy. I don’t know who launched it.” GIGGLE debuted in September 2025 with a market capitalization near $24 million, climbed to $100 million in October, and briefly reached $277 million following a 222 percent one-day rally before sliding back to around $60 million. Binance later announced plans to direct half of its GIGGLE trading fees toward Giggle Academy’s charitable programs, while the token itself donates 5 percent of every trade to education initiatives.

Another token connected indirectly to CZ, ASTER, suffered a 20 percent single-day drop as traders tracked the actions of an “anti-CZ whale” who reportedly earned $21 million in unrealized profit shorting ASTER following CZ’s disclosure of a $2 million personal purchase. Data showed ASTER’s open interest spiked 40 percent to $640 million before falling to $542 million as liquidations cascaded. Analysts cited the episode as an example of how celebrity-linked exposure can sway investor behavior and distort the broader coin market cap.

Adding to the day’s uncertainty, liquidity provider Wintermute was forced to issue a denial after rumors suggested it was preparing legal action against Binance following October’s flash crash that erased $19 billion to $20 billion in market value. CEO Evgeny Gaevoy described the talk as “false,” stressing the firm was “perfectly fine, business as usual.” Despite acknowledging “unusual liquidations” during the event, Gaevoy said Wintermute remained operationally sound. Fund managers argued the incident could test whether exchanges hold a duty of care similar to regulated markets, potentially reshaping future oversight expectations.

Across the board, the crypto price index reflected growing investor fatigue over headline-driven volatility. Political ties, memecoin confusion, and whale-driven trades have created fresh uncertainty in a market still digesting October’s sharp corrections. Traders remain focused on transparency from high-profile figures and exchanges as fluctuations in the overall coin market cap continue to influence sentiment across the broader crypto price landscape.

This article has been refined and enhanced by ChatGPT.