The value $TST sharply dropped by over 40% almost instantly after an anonymous whale sold tokens worth $6-7 million. The total market capitalization of the asset was $55 million, highlighting the size of this user's position.
Social media users quickly accused Changpeng 'CZ' Zhao or other Binance insiders of being the whale, without any evidence. The shock is understandable, but the witch hunt will not help anyone recover their positions.
The TST whale causes a price shock
As for memecoins on BNB, Test Token (TST) has as colorful a history as any other asset. TST was initially created to demonstrate how to launch a memecoin, but traders quickly embraced it as a speculative asset.
However, TST enthusiasts are bewildered after one whale dumped a supply worth $6-7 million, causing significant chaos:
Trading data #coinglass nglass provides valuable insights. The trading volume of TST surged by over 800% in the last 24 hours, highlighting that one whale had a massive impact.
Most of this volume was concentrated on Binance's spot and futures markets, which the whale used to exit their position. The market capitalization of TST dropped nearly $20 million instantly.
An additional twist is the sudden level of accusations and finger-pointing from token supporters. Who was this whale and how did they acquire such a significant share of TST?
If the market capitalization of the memecoin was only $55 million, then one person held more than one-tenth of the entire supply. Binance founder CZ was accused of previous issues with TST, and now it’s happening again:
"Binance and CZ continue to dump on their users along with the market maker Wintermute. A few months ago, Wintermute dumped ACT by 70% in just a few moments. Now TST, another fraudulent project promoted by CZ, has dropped nearly 50%. Binance has been sucking its users dry since they gave $4 billion to the SEC last year," said one user.
To be clear, there is no evidence of CZ's involvement. However, social media is flooded with accusations that he or another Binance insider was the TST whale.
Memecoin enthusiasts attacked the platform after many unexpected market movements, such as the mentioned crash $ACT .
Without any clearer evidence, these accusations look like simple hysteria. One whale caused TST to move more in a moment than in a month. A bit of panic is understandable given the circumstances.