"Laozi" rises 65% in 1 hour to a new high, how the BNB Foundation's $50,000 purchase triggered a market reversal

The Chinese Meme Coins “Laozi” and “Hajimi” on BNB Chain have achieved remarkable gains in a short period. Among them, “Laozi” briefly surpassed a market cap of $19 million, setting a new all-time high, with a 65.18% increase in just 1 hour; “Hajimi” reached a market cap of $49.23 million, with a 16.59% increase in the same timeframe. More notably, this surge was explicitly supported by the BNB Chain Foundation—each bought $50,000 worth of the two tokens.

How Foundation Support Changes Market Expectations

From Crash to Rally: A Reversal

According to relevant reports, “Laozi” experienced a dramatic turnaround. On January 10th at 15:00, this token dropped over 40% within 4 hours, with its market cap falling to $6.11 million. But in less than 24 hours, its market cap rebounded to $19 million, more than tripling. The trigger for this reversal was the Foundation’s purchase action.

Why is the Foundation’s $50,000 Purchase So Critical?

In the Meme coin market, the influence of small amounts of capital is often underestimated. The core reasons why the Foundation’s $50,000 buy-in could trigger such a chain reaction are threefold:

• Signal Value: Endorsement by the Foundation signifies official recognition, which is highly persuasive within the Meme coin community.
• Liquidity Catalyst: For tokens with smaller market caps, a $50,000 purchase can significantly boost the price and trigger FOMO.
• Community FOMO: According to reports, major community figures like @huahuayjy have started to follow suit, further amplifying the upward momentum.

A True Reflection of Market Hotness

Community discussions in relevant forums show that “Laozi” has become a hot topic within the BNB Chain ecosystem. Users’ reactions range from regret over “missing out,” to determination to “go all-in,” to FOMO-driven “chasing highs,” fully illustrating the typical emotional cycle of the Meme coin market. Notably, this token’s inspiration comes from a tweet by Binance CEO He Yi, whose “big sister” effect indeed holds strong appeal in the Chinese community.

Risks That Must Be Recognized

Although the gains are impressive, this is also a critical moment to be cautious in the Meme coin market. According to historical data from relevant reports:

• Extreme Volatility: “Laozi” experienced drastic swings within 24 hours—from a 40% crash to a 65% surge.
• Lack of Fundamentals: Meme coins fundamentally rely on market sentiment and hype, with no real utility or revenue model.
• High-Risk Nature: Short-term volatility means participants face significant risk of losses.

User feedback from relevant reports indicates that even those who successfully chased the rally have suffered losses due to chasing high. This demonstrates that chasing gains in the Meme coin market is often a high-risk behavior.

Summary

The Foundation’s buying activity has indeed shifted market expectations, but this does not mean that “Laozi” and “Hajimi” have long-term investment value. This surge is more a result of Foundation endorsement, community sentiment, and short-term capital inflows. For investors, it’s crucial to understand the essence of Meme coins—they are high-risk, highly volatile speculative assets, not long-term holdings. Short-term peaks often coincide with the greatest risks.