GIGGLE unexpectedly showed a "roller coaster" market, why is the BSC ecosystem so fragile?

Author: Azuma, Odaily

Reprint: White55, Mars Finance

As the market remains sluggish, the BSC ecosystem has suffered an even greater blow due to an unexpected emotional outburst.

At around 5 PM on November 3, the Meme token GIGGlE, themed around the charity education project Giggle Academy backed by CZ, initially surged rapidly due to a favorable announcement from Binance, but then plummeted sharply following a statement from CZ, exhibiting an extremely exaggerated “roller coaster” market trend in a short period, which also led to a sharp decline in several representative Meme tokens of the BSC ecosystem, such as “4” and “Binance Life.”

The Rise Story of GIGGLE

The development team of GIGGLE is the GiggleFund of the BSC community. Although this project is not directly related to the Giggle Academy team, it has keenly captured the hype opportunity during the latter's open-chain donations, using “transaction fee donations” as a selling point to achieve a soft “binding” of community consensus.

On September 21, Giggle Academy announced that it would begin accepting public donations in the form of cryptocurrency to help more children gain access to free, high-quality education. GiggleFund took this opportunity to launch GIGGLE and announced that all GIGGLE transaction fees would be donated to Giggle Academy. This excellent entry point allowed GIGGLE to rapidly achieve explosive growth, and Giggle Academy quickly received over 1 million dollars in donations just 12 hours after opening donations, with approximately 90% coming from GIGGLE transaction fees. CZ specifically praised this, stating that “it changed his perspective on meme tokens, showcasing the practical use of meme tokens,” further solidifying GIGGLE's leading position in the BSC ecosystem.

While continuously contributing transaction fee donations to Giggle Academy (with the latest data showing a donation of 11.2 million USD), GIGGLE has also quickly launched the coin security station - Alpha went live on October 3, perpetual contracts on October 9, and spot trading officially launched on October 25. Although on October 25, Giggle Academy clarified that “no cryptocurrency, tokens, or smart contract addresses have ever been issued,” the community's enthusiasm for GIGGLE reached a peak under the more explicit support of “launching spot trading” - on that day, GIGGLE surged to a historical high of 313 USD, corresponding to a market value of 313 million USD.

Roller coaster market, crashing the BSC ecosystem

After logging into Binance spot trading, along with the cooling down of the Meme sector and the entire market, the popularity and price of GIGGLE have experienced a continuous decline. During this period, GIGGLE holders began to call on the community to ask Binance to donate the GIGGLE spot and contract trading fees on the platform to continue the initial vision of the token — of course, this also includes the holders' expectation that “the market will interpret this as Binance once again expressing support for GIGGLE.”

On November 3rd at 17:06, the long-awaited announcement finally landed - Binance officially announced that starting from December, 50% of the trading fees generated from GIGGLE spot and leveraged trading will be donated to charitable projects supported by the Giggle Fund. Stimulated by this positive news, GIGGLE quickly surged from around $70 to a maximum of $113.99, with a short-term increase of over 60% at one point.

However, the “good times do not last long.” Perhaps to prevent the community from excessive speculation, or perhaps to help Giggle Academy clarify its relations, CZ suddenly posted at 17:46: “GIGGLE is not a token officially launched by Giggle Academy. I do not know who issued it.”

Such a straightforward statement was quickly interpreted by the market as “GIGGLE has become a discarded asset,” leading to a surge in panic, and the price of GIGGLE began to plummet. It not only rapidly retraced its previous gains but even fell as low as 56.21 dollars at one point.

Worse still, many users chose to jump in and chase the price when the Binance announcement was made, leading to a sudden shift in sentiment that caused many to get trapped or even face liquidation. Notable on-chain trader 0xSun revealed that he lost $980,000 as a result and expressed his disappointment with the BSC ecosystem; another well-known KOL in the Chinese community, Lee Chan, also disclosed a loss of $426,000.

Soon, feelings of disappointment and panic began to spread to other BSC ecosystem tokens. As of the time of writing on November 3 at 22:40, BNB was at 1018 USDT, a 24-hour decline of 6.01%; 4 was at 0.064 USDT, a 24-hour decline of 23.66%; Binance Life was at 0.154 USDT, a 24-hour decline of 27.52%.

The market also welcomed a new round of decline in the evening…

What caused such a shock from a statement?

It has only been a month since the BSC explosion in early October, and BSC is indeed an ecosystem filled with wealth effects, but it can also face a crash due to a single “news”.

This is clearly not a question that can yield a clear conclusion in just a few words. Looking back at this cycle, the development of the industry seems to have reached a fork in the road. On one hand, the slogan of mainstream adoption is always being shouted, but institutions seem only interested in a very small number of assets like BTC and ETH; on the other hand, influenced by the remnants of “VC manipulation” and “insider harvesting,” old narratives have continuously collapsed, new narratives have failed to take over, and retail investors have never been able to form a general consensus on the big direction, with hotspots always being fleeting.

In this context, compared to being confused in a fragmented market, focusing on attention and liquidity has gradually become the main path for new projects to break through. Relying on the largest user base and liquidity position in the industry, Binance's importance in the entire industrial chain is also becoming increasingly apparent. Especially after Binance tightened its listing window for other ecosystems like Solana and Base, and started to vigorously support BSC, Binance and BSC have become the central hub for retail trading. As the central figures of this hub, CZ and He Yi's every word and action can easily be interpreted by the community as a “oracle”, leading to a larger scale of collective emotional impact.

In early October, BTC once broke through its historical high, and at that time, the market sentiment was very positive, with retail investors full of imagination and confidence about the future market. At that moment, CZ and He Yi didn't even need to explicitly support anything; just a slight mention would immediately ferment community sentiment, leading to the creation of one phenomenon-level popular token after another, such as “Binance Life.”

However, it is not only positive emotions that are magnified. After the epic liquidation on October 11, market liquidity quickly tightened, and retail sentiment became highly tense; the balance of power had already changed. Just like today’s comments about GIGGLE, CZ’s intention may have been just to make a statement like the Giggle Academy’s official clarification on October 25. However, the already tight liquidity in the market reacted directly, resulting in a collective decline of the ecosystem.

From a higher dimension, today's unexpected flash crash in BSC is less about a temporary loss of market sentiment and more about a reflection of the structural distortions in the entire industry.

When attention and liquidity become the only remaining value anchors, the market's operational logic is no longer based on technology, products, or long-term beliefs, but rather depends on discourse power, social relationships, and speculative psychology. In this distorted market structure, reflexive cycles are always accelerated; rising prices are glorified, while falling prices are seen as betrayal—CZ may never have changed, but the image of CZ imagined within collective emotions is always uncontrollable.