The cryptocurrency market is once again in turmoil as GIGGLE — an emerging memecoin — suddenly lost up to 40% of its value after Binance CEO Changpeng Zhao (CZ) officially denied the connection between the Token and the Giggle Academy project.
Before the incident, GIGGLE had created a "fever" in the investment community when Binance announced that it would donate the transaction fees of this Token to the educational project Giggle Academy. That positive news caused the price of GIGGLE to skyrocket, even reaching the top of the most mentioned memecoins on cryptocurrency forums.
However, the rally was short-lived. Shortly after, CZ posted a correction tweet that immediately “froze” the market:
“Memecoin $Giggle is NOT an official coin issued by Giggle Academy. I have no idea who is behind this project. It's great to see the community raising so many donations, and not surprised Binance chose to donate their trading fees.”
This Chia quickly wiped out tens of millions of dollars in GIGGLE’s Capital , forcing many investors to sell off to cut their losses. Analysts said the 40% drop showed the extremely high risk of memecoins – Token that are often created from social media trends, without a specific project foundation.
