Giggle Academy, the crypto education initiative founded by former Binance CEO Changpeng “CZ” Zhao, is actively working to separate itself from the GIGGLE token. This move comes in response to a significant surge in trading volatility that has raised serious questions about the token's legitimacy. In a statement posted on X late Monday, Zhao clarified, "The Giggle memecoin is not an official coin launched by Giggle Academy. I don’t know who launched it."
Giggle Academy reinforced this message in a separate post on Tuesday, emphasizing that GIGGLE is a "community-initiated memecoin" and not an official project token. This clarification followed an announcement over the weekend from Binance, indicating that it would begin donating half of the GIGGLE spot and margin trading fees to charitable projects associated with the Giggle Fund starting in December. Despite these efforts to quell speculation, the situation has done little to calm the market. Traders have accused promoters of exploiting the Giggle name for profit, while others have questioned Binance's decision to link a charity fund to a token it did not issue. The unfolding tension highlights the often blurred lines between community-driven memecoins and projects associated with prominent figures in the cryptocurrency space.
GIGGLE's Rapid Rise and Subsequent Fall
The Giggle Fund (GIGGLE) token was initially launched in September 2025 on Binance’s BNB Smart Chain. It debuted with a market capitalization of approximately $24 million. The token was promoted as a charity-oriented memecoin, with a plan to allocate 5% of each trade to fund Giggle Academy's educational programs, eventually transitioning to a decentralized management structure. By early October, GIGGLE's market capitalization had significantly increased, reaching $100 million according to data from CoinGecko.
On October 25, the token experienced a dramatic surge, climbing 222% and reaching a peak market capitalization of $277 million. However, this rapid ascent was followed by a sharp decline, with the market cap falling back to $60 million within days. The token saw a rebound to approximately $90 million on Tuesday, leaving investors feeling uneasy about potential market manipulation and insider trading. Crypto commentator The Alchemist expressed concerns on X, stating, "They really pumped that GIGGLE up and used y’all for exit liquidity."
The extreme volatility attracted considerable scrutiny from retail traders and analysts. This attention was amplified by Binance's donation pledge, which appeared to lend the token an unwarranted air of legitimacy. Giggle Academy has not yet responded to requests for comment from Cointelegraph regarding the token's price swings or its unofficial origins.
Controversy Extends to Binance
This episode has unfolded against a backdrop of renewed attention on Binance's own ecosystem. The exchange's native token, BNB, has experienced a decline after briefly holding the position of the world's third-largest cryptocurrency by market value earlier in October. Concurrently, CEO Richard Teng addressed allegations that Binance had promoted a Trump-linked stablecoin prior to Zhao’s presidential pardon on October 23.
These claims were based on a reported $2 billion investment from Abu Dhabi's sovereign fund, MGX, which was settled using a stablecoin known as USD1. Teng clarified to reporters that Binance had no involvement in the stablecoin's utilization, stating, "The usage of USD1 for the transaction between MGX as a strategic investor into Binance was decided by MGX." These controversies emerge as Binance is striving to stabilize its reputation following Zhao's departure and a series of enforcement actions across various major jurisdictions. The turmoil surrounding the Giggle token introduces an additional layer of reputational complexity as the firm navigates heightened scrutiny in the post-CZ era.
Broader Implications for the Crypto Market
Memecoins that are linked, even indirectly, to high-profile individuals often gain initial traction before succumbing to speculative pressures. In the case of GIGGLE, its association with Zhao's education project provided a degree of credibility that community promoters swiftly exploited. The outcome – a volatile, loosely governed asset connected to Binance's ecosystem – serves as a clear illustration of the persistent challenges posed by misinformation and branding risks within cryptocurrency markets.
For investors, this situation serves as a critical reminder that even tokens associated with recognized projects or figures can carry disproportionately high risks when governance, issuance, and regulatory clarity are absent. Giggle Academy's prompt action to disavow the token suggests the increasing wariness of mainstream institutions towards memecoin mania, particularly when charitable or educational brands are involved.