CZ Tests mubarak token for MEV Issues, Causing Price Surge
On March 23, Changpeng Zhao, Binance’s founder, made a leveraged trade on Mubarak (MUBARAK). He opened a 24.7x long position using 0.04 BNB as collateral on APX Finance. This action was reported by on-chain analyst ai_9684xtpa on X. Despite his claim that it was just a test,the market reacted strongly. In just 7 minutes, APX surged 26%, and MUBARAK rose 5.5%. The trade used a public donation address and was later closed.
Zhao’s move triggered a significant price increase. APX jumped from $0.64 to $0.081,while MUBARAK climbed from $0.146 to $0.154. Zhao stated it was for on-chain testing, not a big deal.Though, the market saw it differently.
Whenever CZ trades or tweets, the market responds.Recently, he bought 20,150 MUBARAK for 1 BNB, boosting MUBARAK’s price. This aligns with a trend where his actions often lead to buying pressure. MUBARAK briefly topped BNB Chain’s memecoin rankings, with trading volume soaring past $180 million. The trade aimed to check for Maximal Extractable Value (MEV) issues. MEV is when validators reorder transactions for profit. BNB Chain users have lost about $1.5 billion due to MEV in 2024. His actions often cause price spikes. This time, he used APX Finance, causing APX to spike. The token briefly became the top memecoin by market cap. The trade was a test to see if MEV still exists. MEV is when validators reorder transactions for profit. BNB Chain users faced $1.5 billion in losses in 2024. He wants to reduce MEV on BNB chain. His February poll asked if MEV should be reduced. MEV is a concern for BNB Chain users.
For more details, check ai_9684xtpa’s report and CZ’s explanation.
