CZ-Backed YZi Labs Invests in Sky Mavis, LayerZero, Aptos Labs, and Polygon

With a portfolio of over 250 projects, YZi Labs invested in blockchain companies such as Sky Mavis, LayerZero, Aptos Labs, and Polygon.

A test memecoin (TST) on BNB Chain experienced a rapid price surge, quickly reaching a market capitalization of $52 million, before plummeting to $15 million within minutes.

The volatility was triggered by a post on X by Binance founder and former CEO Changpeng “CZ” Zhao.

In the post, Zhao revealed that the BNB Chain team had created a tutorial video demonstrating how to launch memecoins using the Four.Meme platform, with TST used as an example. The video, however, unintentionally included the token's name.

This sparked a speculative trading frenzy, particularly among Chinese crypto key opinion leaders (KOLs), who are known for influencing market trends. The BNB Chain team subsequently removed the video and deleted the private key linked to the creator address, which held 0.13% of TST's supply.

Despite the team's efforts, Zhao suggested that the tutorial should be restored, stating, “It is what it is. This is NOT an endorsement from me for the token.” He added, “Happy trading!”

Zhao also clarified that TST is not an official BNB Chain token, and neither Binance nor the BNB Chain team holds any of it.

At its peak price of $0.0517, TST recorded a 22,500% price increase, pushing its market cap to $52 million. However, as the speculative hype cooled, the token quickly dropped back to $15 million.

The event comes shortly after Zhao's return to Binance Labs, now renamed YZi Labs, following his four-month U.S. prison sentence for money laundering charges.

YZi Labs, named after Zhao and Binance co-founder Yi He, is now structured as a family office investment firm, distancing itself from Binance's direct operations.

With a portfolio of over 250 projects, YZi Labs has invested in blockchain companies like Sky Mavis, LayerZero, Aptos Labs, and Polygon. The firm currently manages around $10 billion in assets, according to Bloomberg.

Last month, CZ suggested that China could adopt a strategic Bitcoin reserve, potentially following a plan proposed by U.S. President-elect Donald Trump.

Speaking at the Bitcoin MENA conference in Abu Dhabi, Zhao said smaller countries would likely lead the way in adopting Bitcoin reserves, with larger nations, including China, following suit later.

Zhao, who grew up in China, acknowledged the unpredictability of the country's stance on crypto, citing the government's lack of transparency. However, he described the establishment of a Bitcoin reserve as “inevitable,” stating, “They have to do it at some point because it’s the only ‘hard’ asset.”