Binance founder CZ (Changpeng Zhao) transferred 1,440 BNB and 182,620 BinanceLive tokens, worth approximately $965k, to Giggle Academy’s Gnosis multisig wallet on August 17. Arkham’s monitoring showed that CZ’s public address burned 4,444 BinanceLive, NuLai, and MarsCoin tokens on the same day.
CZ’s Trust Wallet Test Sparks Discussion About Meme Coin Burns
On August 16, 2026, CZ explained on X that while testing Trust Wallet that day, he discovered the wallet contained so many meme coins that even finding BNB was difficult, so he attempted to burn some of the tokens. This action sparked extensive discussion in the community. CZ stated: “I realized that I will never be able to ‘clean out’ the meme coins from this address. The more I burn, the more people will send tokens to this address. The transparent nature of blockchain means that any activity on this address will be overinterpreted by the community.”
Arkham’s monitoring records show that on August 16, 2026, CZ’s public donation address burned 4,444 BinanceLive, NuLai, and MarsCoin tokens.
CZ Explains Why He Abandoned the Public Address and Outlines the Giggle Academy Donation Plan
In a public statement on X, CZ explained his subsequent plans. He said he had considered asking the Trust Wallet team to develop an “Ignore Coin” feature to prevent the interface from being flooded with tokens, but concluded that this feature would be meaningless to 99.99% of users.
CZ’s announced plan was to donate the BNB and the BinanceLive tokens purchased with BNB to Giggle Academy. Afterward, he would stop using the address and let it become a burn address. CZ also stated: “Too many people are trying to overinterpret ‘What does he mean by doing this?’” He emphasized that the operation was only a test of the wallet’s functionality.
Donation Transfers Monitored by Onchain Lens
According to Onchain Lens’ on-chain monitoring, CZ transferred two assets to Giggle Academy’s Gnosis multisig wallet in separate transactions. The first transfer consisted of 1,440 BNB, worth approximately $872k based on the market price at the time of the transfer. The second consisted of 182,620 BinanceLive tokens, worth approximately $93k. The two transfers had a combined value of approximately $965k and were completed on August 17, 2026.
Trader Buys MARSCOIN with 16 BNB and Ultimately Makes Approximately $282k in Profit
According to Lookonchain’s on-chain data, a trader monitored CZ’s public wallet throughout the process and completed the following sequence of transactions after a signal that CZ had burned MARSCOIN appeared:
Step 1 (Purchase): At the same time CZ’s wallet burned 4,444 MARSCOIN, the trader used 16 BNB, worth approximately $9,645, to buy 84.61 million MARSCOIN. The trader paid a gas fee of 9.93 USDT—several hundred to several thousand times the normal level—to complete the transaction ahead of other traders.
Step 2 (Recovering the Principal): The trader sold approximately 42.3 million MARSCOIN for 16.4 BNB, recovering the initial investment and turning the remaining holdings into a “zero-cost position.”
Step 3 (Selling in Batches): The trader continued selling the remaining approximately 42.3 million MARSCOIN in batches to avoid the losses associated with exiting too early while the token price continued to rise.
Final Result: The remaining tokens were cumulatively sold for 465 BNB, worth approximately $282k based on the price at the time.
FAQ
Why did CZ decide to donate BNB and BinanceLive and abandon the public address?
According to CZ’s public statement on X, he discovered an excessive number of meme coins in the wallet while testing Trust Wallet. His attempt to burn them sparked community discussion. He believed that the transparency of blockchain meant that every operation involving the address would be overinterpreted, so he decided to donate the BNB and BinanceLive to Giggle Academy and stop using the address, letting it become a burn address.
Which tokens did Arkham record CZ’s address burning on August 16?
According to Arkham’s monitoring, on August 16, 2026, CZ’s public donation address burned 4,444 BinanceLive, NuLai, and MarsCoin tokens.
How did the trader quickly complete a high-return trade after CZ burned MARSCOIN?
According to Lookonchain’s on-chain data, the trader continuously monitored CZ’s public wallet and, when CZ burned MARSCOIN, bought in ahead of other traders by paying a gas fee several hundred to several thousand times higher than normal to ensure that the transaction was completed first.
How exactly did the “recovering the principal after doubling” strategy work?
According to Lookonchain’s records, after buying with 16 BNB, the trader first sold approximately half of the holdings for 16.4 BNB to recover the initial investment, turning the remaining holdings into a zero-cost position. The trader then sold the remaining tokens in batches, ultimately earning approximately $282k.
