- CZ’s tweet about his dog triggered a frenzy, with multiple Broccoli coins launching on BNB and Solana.
- A whale spent $2.54M on two Broccoli memecoins, one surged 24.7%, and the other plunged 68.1%.
- SEC Commissioner Hester warns most meme coins may not fit within current crypto regulations.
A frenzy erupted in the world of meme coins after CZ’s tweet. It all started when the former Binance CEO shared a seemingly harmless post on X. He revealed that his dog, a Belgian Malinois, is named Broccoli, and within minutes, a storm of traders rushed to mint tokens named after the dog, setting the stage for a chaotic trading session.
Within a short time, multiple Broccoli-named tokens flooded the market on Solana and BNB Chain. Some saw their market cap soar to billions within minutes, only to crash heavily. Amid the chaos, one investor, known by the wallet address 0x392eb, acted swiftly. With less than $1,000, they created a Broccoli-themed token, minting over 110 million tokens for themselves. Two minutes later, the selling began.
In just 20 minutes, 0x392eb had liquidated their entire holdings, securing a staggering $6.5 million profit. Meanwhile, thousands of buyers piled in, hoping to ride the wave. However, as the liquidity drained, the reality set in, those who entered late suffered massive losses. The token’s market cap plummeted, leaving many holding worthless coins.
One whale, now under the scrutiny of blockchain analysts, invested $2.54 million into two different Broccoli-themed meme coins. One turned a $530.5K profit, gaining 24.7%. The other, however, tanked by 68.1%, leaving them with a $302.4K loss. The contrasting fates of these two investments illustrate the extreme volatility of meme coins—overnight fortunes for some, and devastating losses for others.
The surge of Broccoli-themed coins is just the latest in a long string of celebrity or influencer-linked meme coins. Recently, a report from Messari highlighted a brutal reality, most influencer-backed cryptocurrencies have lost 78% from their all-time highs. Tokens such as TRUMP, MELANIA, and JAILSTOOL once rode high on hype but have since collapsed under market pressures. The SEC has even stepped in, scrutinizing the legality of celebrity-driven tokens and the lack of proper disclosures in their promotion.
SEC Commissioner Hester Peirce recently addressed the issue, acknowledging that many of these meme coins might not fall under the SEC’s jurisdiction. However, she emphasized the importance of clear regulations to prevent unchecked speculation. She pointed to past enforcement actions against Floyd Mayweather and DJ Khaled for promoting unregistered ICOs.
Related: Memecoins vs. Fundamentals: CZ Breaks the Silence on TST
The Broccoli coin debacle mirrors previous cycles in the crypto space. From the EthereumMax scandal involving Kim Kardashian to Logan Paul’s failed CryptoZoo project, the pattern remains the same. A sudden hype-driven surge, a rush of retail investors, and an inevitable collapse that leave most participants at a loss.
Despite these repeated crashes, the appeal of meme coins remains strong. Investors continue to pour money into tokens tied to internet culture, influencers, and even random animals. Crypto traders, knowing the risks, still take their chances, hoping to strike gold before the inevitable fall.
Meanwhile, regulators watch closely. With Congress debating whether the SEC or CFTC should take the lead in crypto oversight, the future of meme coins remains uncertain. As long as the market remains unregulated, the cycle of rapid rises and dramatic falls will likely continue. And with every viral moment, a new wave of traders will chase the next big meme coin, hoping that this time, they’ll be the lucky ones who cash out in time.
