TST’s value plummeted over 40% almost instantly after an anonymous whale sold $6-7 million worth of the token. The asset’s total market cap 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 a shred of proof. Shock is understandable, but witch hunts won’t help anyone regain their positions.
TST Whale Causes Price Shock
As far as BNB meme coins go, Test Token (TST) has as colorful a backstory as any other asset. TST was initially created to demonstrate how to launch a meme coin, but traders quickly latched onto it as a speculative asset.
However, TST enthusiasts are in disarray after one whale dumped a supply worth $6-7 million, causing extensive chaos:
Coinglass’ trading data provides some valuable insights. TST’s trading volume is up over 800% in the last 24 hours, highlighting that one whale alone had a tremendous impact.
Most of this volume was concentrated in Binance’s spot and futures markets, which the whale used to exit their position. TST’s market cap fell almost $20 million in an instant.
One extra twist is the sudden level of blame and finger-pointing from the token’s supporters. Who was this whale, and how did they get such a major chunk of TST?
If the meme coin’s market cap was only $55 million, then one person had more than one-tenth of the whole supply. Binance’s founder, CZ, got blamed for previous TST troubles, and now it’s happening again:
“Binance and CZ keep dumping on their users along with market maker Wintermute. A few months back, Wintermute dumped ACT by 70% in just a few moments. Now, TST, another scam shilled by CZ, went down almost 50%. Binance has been milking their users since they gave $4 billion to the SEC last year,” one user claimed.
To be clear, there is no evidence of CZ’s involvement. Still, social media is rife with accusations that he or another Binance insider was the TST whale.
Meme coin enthusiasts have attacked the platform after many unexpected market moves, like the aforementioned ACT crash.
Without any clearer proof, these accusations look like mere hysteria. One whale caused TST to move more in an instant than it has in over a month. A little panic is understandable, considering the circumstances.
Unfortunately, nobody else has proposed a serious alternative hypothesis yet. Hopefully, some post-mortem blockchain analysis will illuminate some details about the TST whale’s identity.
Until then, traders should remember that the meme coin market is extremely risky. That risk doesn’t justify baseless accusations.
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