$GIGGLE Suddenly the "Roller Coaster" market appears, who is responsible for the BSC ecosystem flash crash?

CZ’s statement triggered GIGGLE tokens to plummet over 50%, causing collective declines in BSC ecosystem tokens, reflecting a structural abnormality in the market. (Background: CZ used 2 million USD to add to ASTER, which surged 24%, and then called back to when he bought BNB eight years ago: holding it ever since) (Additional background: $GIGGLE meme coins have donated nearly 12 million USD in BNB to Giggle Academy, CZ: promoting free education worldwide) Amid ongoing market sluggishness, the BSC ecosystem suffered even greater impact due to an unexpected emotional outbreak. Around 5 p.m. on November 3, the meme token GIGGLE, themed on the charitable education project Giggle Academy endorsed by CZ, initially surged rapidly on positive news from a Binance announcement, then sharply declined following CZ’s statement, creating an extremely exaggerated “roller coaster” market in a short period. Several representative meme tokens of the BSC ecosystem, including “4” and “Binance Life,” also experienced short-term crashes.

The Rise of GIGGLE
The development team behind GIGGLE is GiggleFund, a BSC community team. Although not directly affiliated with Giggle Academy, they keenly seized the hype opportunity when the latter opened on-chain donations, using “transaction fee donations” as a selling point to achieve soft “binding” within community consensus.

On September 21, Giggle Academy announced it would accept public donations in cryptocurrency to help more children access free, high-quality education. GiggleFund launched GIGGLE and pledged to donate all transaction fees from GIGGLE to Giggle Academy. This strategic move led to a rapid explosion of GIGGLE’s popularity, with Giggle Academy receiving over 1 million USD in donations within 12 hours of opening donations, about 90% of which came from GIGGLE transaction fees. CZ publicly praised this, saying, “This changed my view of meme tokens, demonstrating their practical use,” further cementing GIGGLE’s leading position in the BSC ecosystem.

While continuously contributing transaction fee donations to Giggle Academy (latest data: 11.2 million USD donated), GIGGLE quickly integrated into Binance’s ecosystem—Alpha launched on October 3, perpetual contracts on October 9, and spot trading officially on October 25. Although Giggle Academy clarified on October 25 that it had “never issued any cryptocurrency, token, or smart contract address,” the clear positive support for “spot trading” pushed community enthusiasm to a peak—GIGGLE once hit a historical high of 313 USD, with a market capitalization of 313 million USD.

Market Roller Coaster and Ecosystem Collapse
After listing on Binance spot trading, along with the cooling of the meme sector and the overall market, GIGGLE’s popularity and price steadily declined. During this period, GIGGLE holders began calling on Binance to donate platform GIGGLE spot and contract trading fees to continue the original vision—also hoping that the market would interpret this as Binance reaffirming support for GIGGLE.

At 5:06 p.m. on November 3, the community’s expectations finally materialized—Binance announced that starting December, 50% of the fees generated from GIGGLE spot and leveraged trading would be donated to Giggle Fund-supported charity projects. Stimulated by this news, GIGGLE’s price surged from around 70 USD to a high of 113.99 USD, a short-term increase of over 60%.

However, “the good times did not last,” perhaps to prevent excessive speculation or to clarify the relationship with Giggle Academy, CZ suddenly posted at 5:46 p.m.: “GIGGLE is not an official token launched by Giggle Academy. I don’t know who issued it.”

This blunt statement was quickly interpreted by the market as “GIGGLE has become abandoned,” sparking panic. GIGGLE’s price sharply reversed, retracing previous gains and dropping to as low as 56.21 USD.

Worse still, many users, reacting to Binance’s announcement, bought in at the peak, leading to emotional shifts that caused many to be liquidated or trapped. Notable on-chain trader 0xSun disclosed a loss of 980,000 USD and expressed disappointment in the BSC ecosystem; another well-known Chinese influencer, Lee Chan, also revealed a loss of 426,000 USD.

Subsequently, disappointment and panic spread to other BSC ecosystem tokens. As of 10:40 p.m. on November 3, BNB was trading at 1018 USDT, down 6.01% in 24 hours; 24 hours later, it was 0.064 USDT, down 23.66%; Binance Life was at 0.154 USDT, down 27.52%.

The market experienced another wave of decline that evening…

Why did this announcement cause such turbulence?
Just a month after the BSC explosion in early October, BSC remains an ecosystem full of wealth effects, but it can also be fragile, experiencing a stampede-like crash triggered by a single “news.”

This is clearly not a simple issue that can be concluded in a few words. Looking back at this cycle, the industry seems to be heading toward a fork in the road. On one hand, the call for mainstreaming persists, but institutions seem only interested in a few assets like BTC and ETH; on the other hand, affected by “VC manipulation,” “insider harvesting,” and other toxicities, old narratives keep disappointing, new narratives fail to take over, and retail investors have yet to reach a consensus on the overall direction, with hot topics often fleeting.

In this context, rather than being lost in a fragmented market, focusing on attention and liquidity has gradually become the main path for new projects to break through. Leveraging the industry’s largest user base and liquidity pools, Binance’s importance across the entire industry chain continues to manifest. Especially as Binance tightens listing windows for ecosystems like Solana and Base, and openly supports BSC, Binance and BSC have become the central trading hubs for retail investors. CZ and He Yi, as key figures in these hubs, are often seen by the community as “oracle-like,” amplifying their words and actions, which can lead to larger collective emotional impacts.

In early October, BTC briefly hit a new all-time high, and market sentiment was extremely optimistic, with retail investors full of imagination and confidence about the future. At that moment, CZ and He Yi could even mention support without explicit backing, and the community’s sentiment would immediately ferment, creating phenomena like “Binance Life” and other trending tokens.