USDBNB Chain Test Memecoin Soars to $52M Market Cap Before Crashing to $13M
Unintended Hype Turns Test Token Into a Meme Frenzy
A tutorial token meant for educational purposes on the BNB Chain unexpectedly became a speculative goldmine, ballooning to a nearly $52 million market cap before crashing back down to $13 million. The test token, dubbed TST, was originally created for a step-by-step walkthrough on Four.Meme, a memecoin launchpad on BNB Chain, showing how to deploy a token from scratch. However, its existence quickly turned into a real-world trading frenzy after Binance co-founder Changpeng “CZ” Zhao acknowledged it in an X post.
The memecoin’s name briefly appeared in a single frame of the tutorial video before a BNB Chain team member removed the footage. CZ later instructed them to restore it, though he clarified that TST was neither an official token nor affiliated with BNB Chain. At the time of his post, the token’s market cap stood at just $494,000. That number quickly soared as traders speculated on the asset, pushing its valuation into the tens of millions. However, the rally was short-lived, as heavy profit-taking sent TST plummeting to nearly a quarter of its peak value.
The sudden rise and fall of TST mirrors broader concerns about the speculative excesses of memecoins. With the ability to turn near-worthless assets into multimillion-dollar trading frenzies overnight, the memecoin market has increasingly attracted regulatory attention. While the TST incident was largely fueled by social media hype, similar trends have been seen across other platforms, raising concerns about market manipulation and the risks tied to unregulated speculative assets.
Authorities are zeroing in on memecoin platforms as legal pressure mounts against Pump.fun, a Solana-based launchpad now facing a class-action lawsuit in the Southern District of New York. Filed by investor Diego Aguilar on January 30, the lawsuit accuses the platform of enabling rampant market manipulation, undermining trust in digital assets while accumulating hundreds of millions in fees.
Beyond this, Pump.fun is under fire from law firms Burwick Law and Wolf Popper, which issued a cease-and-desist letter on February 5, demanding the removal of tokens allegedly impersonating their brands.
One such token, "Dog Shit Going No Where" (DOGSHIT2), is cited as an example of intellectual property misuse. The firms claim that Pump.fun not only allows unauthorized token launches but also facilitates assets designed to intimidate plaintiffs involved in legal disputes.
Despite these legal troubles, Pump.fun’s trade volume has soared, recently reaching $3.3 billion in weekly transactions. Political memecoins, including Official Trump (TRUMP) and Official Melania Meme (MELANIA), continue to fuel speculation.
This article has been refined and enhanced by ChatGPT.
