Binance Lists Test (TST) Amid Criticism From CZ — Price Falls 70%

Key Takeaways

• Binance listed Test Token (TST) on Feb. 9.
• Changpeng Zhao (CZ) criticized the listing.
• Test (TST) has fallen 63% since its all-time high.

Binance announced the listing of Cheems (1000CHEEMS) and Test (TST) on Feb. 9. Both tokens come with the seed tag applied, meaning they pose a higher-than-normal risk.

Binance’s strategy of listing meme coins has previously been scrutinized, and this time was no exception.

Binance co-founder and previous CEO Changpeng Zhao (CZ) offered especially sharp criticism regarding the two tokens.

The TST price fell sharply after the listing, validating Zhao’s concerns. Let’s analyze the charts and see if the decline can end soon.

Changpeng Zhao Criticism

CZ’s Binance criticism focuses on several points. Firstly, TST was a test token created for a video tutorial, now considered a meme coin.

CZ reiterated his belief that people should focus on fundamentals but noted that exchanges compete to list the most popular coins with the highest trading volume for their benefit.

According to CZ, the popularity of meme coins skyrocketed in the past few years after the Securities and Exchange Commission (SEC) regulatory scrutiny on utility tokens, causing crypto builders to pivot to meme coins instead.

He ended his post by suggesting that Binance’s listing process is flawed since the listing comes four hours after the announcement.

During this period, the price in a decentralized exchange (DEX) increases and then plummets on the centralized exchange listing.

A community member also noted that Binance has listed 47 new tokens in the past two years, and only three have increased in value, while the vast majority of the rest have fallen over 80%. During this time, BTC has increased over five times while ETH has doubled.

TST Price Falls

The TST price fell under a descending resistance trend line after reaching an all-time high of $0.56 on Feb. 9. After a 72% decline, TST reached a low of $0.157 before bouncing.

The bounce was important since it reclaimed the $0.195 horizontal area and then caused a breakout from the trend line.

If TST maintains the $0.195 support, it will confirm the correction is over, triggering an upward movement to $0.345.

Previously, TST has completed a five-wave upward movement along the lines of a parabola (white). The breakdown confirms the increase is over.

It is unclear if the TST price has completed an A-B-C correction (black) or if it is still in wave B. Since possibilities suggest TST will reach the $0.345 area, the reaction once it gets there can determine the future trend’s direction

Conversely, a breakdown below $0.195 will invalidate the bounce hypothesis and could lead to a 50% drop to $0.096, marking the end of the correction.

TST’s Turbulent Listing

Binance listed TST on Feb. 9, exacerbating the criticism it has received for its meme coin listing strategy.

This time, CZ joined the chorus of complaints. The TST price has fallen nearly 70% since its high.