Binance Coin (BNB) dropped 5% in the last 24 hours and over 12% in a week, trading around $1,060, its lowest in nearly a month.
The decline is linked to scam alerts and a memecoin rug pull affecting confidence in the BNB Chain ecosystem.
Security Concerns Raised by Binance Co-Founders
Changpeng Zhao (CZ) and Yi He warned about phishing scams and fake airdrops on social media.
The official BNB Chain X account was hacked to promote a fraudulent token campaign.
CZ advised against interacting with suspicious contracts, noting scammers use verified profiles to appear legitimate.
Yi He emphasized user responsibility in on-chain investments.
The "Sir Pancake" scam generated $20 million before collapsing, highlighting vulnerability. About 2.5% of new tokens on BNB Chain since 2022 show scam-like behavior.
Meme-Coin Speculation and Risks
BNB Chain's meme coin speculation attracts speculative capital but increases risk exposure for BNB and its holders.
While some traders have seen significant gains, such as turning $3,500 into $7.9 million, the hype has led to vulnerabilities.
BNB hit an all-time high above $1,200 in early October 2025, but market cooling and infrastructure issues have since affected its momentum.
