CZ’s Dog Coin Launch Leads to $6.5 Million Profit for Creator
On Thursday, the memecoin market reacted rapidly to Changpeng Zhao's dog reveal. The former Binance CEO shared a photo of his Belgian Malinois named "Broccoli," prompting the creation of numerous memecoins with the ticker BROCCOLI.
- Within minutes, multiple BROCCOLI tokens appeared on BNB Chain and Solana, some reaching over a billion-dollar market cap before crashing.
- A wallet that minted "CZ's Dog (Broccoli)" quickly sold $6.5 million worth within 20 minutes after launch.
- The token attracted around 30,000 buyers and sellers, executing nearly 100,000 transactions, but most early holders faced significant losses as its market cap fell below $50 million.
- Zhao acknowledged the gambling nature of memecoin trading without addressing the risks posed to retail investors.
The event highlighted the volatility and risks inherent in the memecoin economy, where profits primarily benefit insiders at the expense of later investors.