CZ Clarifies Giggle Fund Donation Model

CZ Clarifies Giggle Fund Donation Model

Publisher:Sajad Hayati

Key Takeaways

  • Binance co-founder Changpeng Zhao (CZ) has clarified the donation model for the GIGGLE meme coin, addressing community confusion.
  • The GIGGLE Fund Token smart contract reportedly donates BNB directly to Giggle Academy’s public address, with Binance proposing to contribute a portion of trading fees.
  • Giggle Academy has officially stated it has no affiliation with the GIGGLE Fund Token or its issuance, clarifying it’s a community-initiated meme coin.
  • The GIGGLE meme coin experienced a significant price surge followed by a sharp decline after CZ publicly distanced himself and the token from Giggle Academy.
  • On-chain data suggests whale activity contributed to the initial spike, with significant USDT investments made before the price crash.

CZ Addresses Giggle Fund Token Donation Confusion

Binance co-founder Changpeng Zhao (CZ) has taken to X (formerly Twitter) to clarify the donation mechanics of the GIGGLE Fund Token. This clarification comes in the wake of considerable community confusion, which reportedly led to a significant drop in the GIGGLE coin’s price. What began as an educational project has evolved into one of the week’s more unusual stories within the cryptocurrency space.

CZ has previously distanced himself from the GIGGLE meme coin, emphasizing that it is not officially associated with his non-profit initiative, Giggle Academy. Concurrently, Binance’s native token, BNB, has also experienced downward price pressure, dipping by approximately 18% in the preceding seven days.

Giggle Fund Donation Model Explained

In a series of posts, Zhao detailed how the Giggle Fund Token’s smart contract is designed to send BNB directly to Giggle Academy’s public donation address. He stressed that the token was community-developed, not by Binance. CZ explained that Binance’s proposal involved donating a portion of its trading fees in the form of Giggle Fund Tokens to the Academy. The proposed mechanism suggested that the charitable organization would burn half of the tokens received and convert the remainder into BNB.

💡 CZ addressed concerns regarding a charity burning donations, stating that the transactions and funds are exclusively between Binance, as the donor, and Giggle Academy, as the recipient.

Giggle Academy Clarifies Stance on GIGGLE Token

Giggle Academy has also issued an official statement to clarify its position. The organization has asserted that it has no official ties to the Giggle Fund Token or its creation. They described the coin as a meme coin that was initiated by community members, independent of Giggle Academy or CZ. The statement further committed to transparently disclosing all income and expenses through a public donation page.

The statement confirmed Binance’s potential plan to donate 50% of transaction fees related to the Giggle Fund Token, a move that garnered significant user attention. In response, Giggle Academy stated its intention to burn 50% of any GIGGLE-related transaction fees it receives from the exchange. The organization reiterated that it has no plans to issue its own token, maintaining its sole focus on free education and charitable initiatives.

GIGGLE Meme Coin Faces Volatility After CZ’s Comments

Binance co-founder launched Giggle Academy in 2024 with the aim of offering free global education. While the platform is still in its developmental stages, a meme coin inspired by the project gained rapid traction. The token initially saw a surge of over 300% shortly after its debut on Binance. However, its value plummeted by more than 30% on Monday following CZ’s public denial of any association with its creation.

“The $GIGGLE meme coin is NOT an official coin launched by Giggle Academy,” CZ posted on X. “I don’t know who launched it.”

📍 On-chain data indicates that whale investors were instrumental in the coin’s substantial initial surge. Reports suggest that one whale wallet allocated 1.2 million USDT to acquire approximately 4,800 tokens, at an average price of $251 per token. Following the price collapse, this investment is now valued at less than $1 million.

⚡ At the time of reporting, GIGGLE is trading around $80.97, with its 24-hour trading volume increasing by 106% to $179 million. Despite the sharp decline, GIGGLE has seen a recovery of 37% in the last 24 hours.

Final Thoughts

The GIGGLE meme coin situation highlights the volatile nature of the cryptocurrency market and the impact of central figures’ statements. While Binance and Giggle Academy have clarified their non-affiliation with the token, the market has reacted sharply to the developments, demonstrating the susceptibility of meme coins to speculation and news.

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