Binance co‑CEO He Yi warns traders: avoid memecoins and AI tokens piggybacking on Binance hype
Binance co‑CEO He Yi warned retail traders about a surge in memecoins, AI‑themed tokens and short‑lived launches that piggyback on Binance’s visibility to trigger rapid price pumps. He clarified on X that Binance’s official posts are informational and not endorsements or promotions of any token launches; employees are prohibited from issuing or promoting tokens. He noted that tokenized words or memes drawn from Binance posts are community actions, not Binance-backed projects. The warning follows repeated advisories from Binance leadership, including CZ, urging users to do due diligence, avoid buying sold social accounts and be wary of pump‑and‑dump schemes. Blockchain analytics referenced show a marked increase in memecoin launches on BNB Chain this quarter, raising risks such as rug pulls, extreme volatility and social‑media‑driven hype. He Yi urged traders to verify token legitimacy via official channels and on‑chain explorers, enable security measures (2FA), and report suspicious activity. Key takeaways for traders: Binance social posts are not investment advice or token endorsements; memecoin activity on BNB/BNB Chain has accelerated and carries elevated short‑term risk; apply strict risk management, confirm token contracts on‑chain and use trusted analytics before trading.
Bearish
The combined reporting emphasizes rising memecoin and AI‑token activity on BNB Chain that seeks to exploit Binance’s reach for quick pumps. Such activity typically increases short‑term selling pressure, heightens volatility and raises the incidence of rug pulls and pump‑and‑dump schemes. For the tokens involved (primarily BNB Chain memecoins), this is bearish in the short term because speculative launches often see rapid peaks followed by sharp dumps when early holders exit. The market impact on established major coins is likely neutral, but traders focused on BNB Chain memecoins should expect elevated downside risk and tighter spreads. In the longer term, repeated regulatory scrutiny and exchange advisories may dampen speculative issuance and restore some stability, but only after significant short‑term disruption. Therefore, categorizing the immediate price impact on the mentioned tokens as bearish is appropriate given the increased supply of low‑quality launches and social‑media‑driven volatility.