CZ’s Latest MUBARAK Trade Puts BNB Chain in Spotlight

On March 23, Binance founder and former CEO Changpeng Zhao (CZ) grabbed attention once again this time with an unexpected trade on APX Finance. CZ opened a 24.7x leveraged long position on the memecoin Mubarak (MUBARAK), using 0.04 BNB as collateral. The transaction was first flagged by on-chain analyst ai_9684xtpa, who shared the update on X (formerly Twitter).

In response, CZ downplayed the move, replying: “Doing a little on-chain testing on Sunday, as usual. Nothing to be excited about.” But as always, when CZ trades or even tweets market excitement follows.

Price Surges Follow CZ’s Small Test

According to ai_9684xtpa, in just seven minutes after CZ opened his position, APX (APX) surged by a staggering 26%, rising from $0.64 to $0.81. At the same time, MUBARAK saw a more modest but notable 5.5% jump, climbing from $0.146 to $0.154. The trade was executed through a public donation address and has since been closed.

This kind of market reaction has become a familiar sight. Just recently, CZ purchased 20,150 MUBARAK for 1 BNB (valued at around $600 at the time). This buy triggered a massive rally for MUBARAK, which briefly claimed the top spot on the BNB Chain’s memecoin rankings. The trading volume soared, surpassing $180 million, according to data from Root Data.

Testing Perpetuals and MEV on BNB Chain

While it might have looked like a casual trade to some, CZ later clarified his real purpose behind the move. He wrote on X, “Just trying the experience, also trying to see if there is still MEV.” For those unfamiliar, MEV (Maximal Extractable Value) refers to the ability of validators or miners to rearrange or reorder transactions within a block for profit.

Although MEV is most commonly associated with the Ethereum (ETH) network, BNB Chain users have not been spared. In 2024 alone, it’s estimated that BNB users have lost approximately $1.5 billion due to MEV. CZ’s trade was part of an ongoing exploration into these issues, following a poll he ran on X on February 7, asking whether the BNB Chain should eliminate or reduce MEV issues significantly.

Community Curious About CZ’s Findings

So far, CZ has not shared the results of his on-chain test regarding MEV. But the crypto community is watching closely. Every action from CZ tends to send ripples through the market, and his involvement in perpetual trading even as a test has sparked discussion around BNB Chain’s infrastructure, validator behaviour, and user security.

With MEV continuing to pose challenges, traders are hopeful that CZ’s efforts will lead to actionable solutions. Until then, it’s clear that even the smallest moves from one of crypto’s most influential figures can still stir markets and inspire both excitement and speculation.