On October 30, 2025, the news that Binance founder CZ (Changpeng Zhao) had received a pardon from former US President Trump sent shockwaves through the global cryptocurrency market. As one of the most influential industry leaders in the cryptocurrency space, CZ’s pardon not only marked the end of his personal legal disputes but also triggered a new wave of ripple effects in the cryptocurrency market. Among these, the Memecoin sector became one of the most active targets in this round of market activity, with its 24-hour increase exceeding 34%, attracting widespread market attention.
Background: CZ’s Amnesty and the Memecoin Market Reaction
According to details disclosed by Odaily Planet Daily, this amnesty event exhibited typical “ripple effect” characteristics. The event originated from an 8% short-term surge in BNB, Binance’s core asset, and quickly spread to the memecoin sector. For example, the memecoin “Binance Life” on the Binance platform saw its price soar from $0.23 to $0.28 after the news broke, a 21.7% increase in 24 hours. Even more noteworthy was the memecoin named “4,” whose price jumped from $0.07 to $0.15, a staggering 114% increase in a single day, making it the fastest-growing memecoin in this round of price increases.
Behind this dramatic volatility, memecoin’s unique market attributes played a crucial role. As a cryptocurrency with a relatively small market capitalization and concentrated liquidity, memecoin is far more sensitive to market sentiment and trending events than traditional crypto assets. The CZ amnesty event served as the catalyst for igniting market sentiment, and memecoin’s volatility amplified this sentiment transmission effect. Notably, memecoin’s performance in this round of market activity validates its role as a “market sentiment amplifier.”
Market Dynamics: Analysis of Memecoin’s Short-Term Surge and Volatility
In this incident, the volatility of memecoin was vividly demonstrated. Taking “Binance Life” and “4” as examples, both experienced price fluctuations exceeding 30% in a short period. This high volatility provides arbitrage opportunities for short-term traders but also implies significant investment risks. According to Odaily Planet Daily statistics, within 15 minutes of the amnesty announcement, the average turnover rate of the memecoin sector reached more than three times the usual daily trading volume, demonstrating the high level of attention and active participation from market participants.
From a trading strategy perspective, memecoin’s high volatility creates an ideal environment for leveraged traders. Taking “4” as an example, during its price surge, the return on leveraged long positions reached a peak of 15% within 15 minutes, far exceeding the intraday volatility of traditional crypto assets. However, this high return also hides high risks. Data shows that during price corrections, some memecoins also experienced drops exceeding 20%, placing extremely high demands on investors’ risk management capabilities.
On a broader market level, memecoin’s performance resonates with the “ripple effect” of the entire crypto market. From Binance-affiliated assets to the Memecoin sector, then to BNB Treasury’s publicly traded stock, and ultimately to the Trump family’s crypto project WLFI and the US-listed company ALT5 Sigma, memecoin has consistently been an active link in this transmission chain. This cross-market, cross-asset transmission mechanism makes memecoin an important indicator for observing crypto market sentiment and capital flows.
Coping Strategies: How to Seize Opportunities Amidst Memecoin Volatility
Given the high volatility of the memecoin market, investors need to establish a sound investment strategy. First, analyzing the transmission path based on “ripple thinking” is crucial. Based on the experience of this event, memecoin price increases often occur in the second wave of a hot topic’s transmission, i.e., after Binance-related assets complete their initial rise, funds begin to spread to the memecoin sector. Therefore, investors can predict the timing of a memecoin’s surge by monitoring the trends of core assets like BNB.
Second, risk management is central to memecoin investment. Given the high volatility of memecoin, it is recommended that investors adopt a “pyramid” position management strategy: initially use a small position to test the waters, and gradually increase the position after the trend is confirmed. Simultaneously, setting strict stop-loss levels, such as limiting the maximum loss per trade to within 2% of the principal, can effectively control drawdown risk.
From a technical analysis perspective, memecoin trading requires focusing on two key dimensions: first, changes in trading volume, as high volume often indicates a continuation of the trend; and second, volatility indicators, such as the ATR indicator, which can help determine whether the current price is overbought or oversold. Furthermore, by combining momentum indicators such as RSI, a multi-dimensional trading signal system can be constructed.
For long-term investors, the investment logic for memecoin should be based on an understanding of its ecosystem value. With the development of the crypto market, some memecoin projects have begun to explore the transformation from “pure memes” to “utility memes,” for example, by introducing practical functions such as staking and governance to enhance token value. This transformation may bring new value support to memecoin and deserves continued attention from investors.
Regulatory Perspective: Compliance Challenges in the Memecoin Market
While the memecoin market is developing rapidly, regulatory compliance issues are becoming increasingly prominent. The recent CZ amnesty, coupled with Trump’s “crypto-friendly regulation” stance, has injected positive policy expectations into the memecoin market. However, looking at global regulatory trends, significant differences remain in the regulatory attitudes towards memecoins across countries. For example, in the US, although the Trump administration has shown a crypto-friendly attitude, the SEC and other regulatory agencies’ determination of memecoins’ security attributes remains uncertain.
In the Chinese market, regulatory agencies prohibit cryptocurrency trading, but leveraging blockchain technology to empower the real economy remains a policy-encouraged direction. Therefore, investors must fully assess the regulatory risks in different jurisdictions before participating in memecoin trading to avoid asset losses due to compliance issues.
Future: The Evolution of the Memecoin Market
Looking ahead, the memecoin market will exhibit three major trends: First, volatility will persist, but the magnitude of fluctuations may gradually converge as the market matures; second, the practical value of memecoin will gradually increase, with some projects potentially achieving value revaluation by introducing useful functionalities; and third, the development of regulatory technology will drive the memecoin market towards compliance and institutionalization.
In this process, memecoin will continue to play a crucial role in the crypto market. Whether as a barometer of market sentiment or a vehicle for innovative experiments, memecoin has demonstrated unique vitality. For investors, understanding the operating logic of memecoin and mastering scientific investment methods will be key to seizing market opportunities.
The recent CZ amnesty incident once again proves that in the “ripple effect” of the crypto market, Memecoin remains a crucial node in the flow of funds and the transmission of sentiment. As the market develops, this transmission mechanism will become more complex and diverse, and memecoin’s role as a market sentiment amplifier will become increasingly prominent. For investors, it is necessary to pay attention to short-term trading opportunities of memecoin, but also to understand the market logic and long-term value behind it in order to seize opportunities in a rapidly changing market.
