A detailed explanation of the four-layer collateral effects of CZ receiving a pardon from Trump.

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6 hours ago

Author | Wenser, Odaily Planet Daily

The matter of Binance founder CZ finally receiving a presidential pardon from Trump has settled, and the crypto market is reacting.

As the news gradually spreads, its impact is expanding from Binance-related assets like BNB to the Meme coin sector, BNB treasury listed companies, and even Trump family crypto projects like WLFI. Through this event, we can also see that the current information transmission effect in the crypto market is still in a ripple-like diffusion state. Odaily Planet Daily will analyze the impact targets of CZ's pardon using "ripple thinking" for readers' reference.

Event Origin: CZ Finally Receives Presidential Pardon, Binance-Related Assets Surge

In a previous article titled "The Era of Crypto Chaos Begins, Here Are 13 Reference Suggestions," we detailed the "ripple thinking path."

Viewing an event as an inducing factor, it will spread like a stone thrown into water, gradually affecting corresponding individuals/assets/markets/tokens/projects/ecosystems, which will be influenced by the rippling waves. The previous case of Hyperliquid facing a decentralized trust crisis due to the JELLYJELLY short-selling incident is a very intuitive example. Achieving this requires crypto players to develop good thinking habits and information sensitivity. My personal suggestion is to draw more layered diagrams, which are very helpful for enhancing transmission-based thinking.

The origin of this event is undoubtedly CZ receiving a presidential pardon from Trump. Moreover, Trump stated: "Although I do not know CZ, I believe he is innocent and is mainly a victim of persecution by the Biden administration." (Note from Odaily Planet Daily: The presidential pardon power is significant, generally restoring civil rights and reversing or eliminating legal barriers caused by past criminal convictions, such as firearm rights and professional licenses.)

Subsequently, CZ's response also had a reciprocating tone, expressing: "I am deeply grateful for the pardon received today and for President Trump's commitment to fairness, innovation, and justice in America. I will do everything possible to help America become the cryptocurrency capital and promote the development of Web3 globally."

To some extent, Trump's pardon of CZ is a move to uphold his established "crypto-friendly regulation" route, also sending a positive political signal to the U.S. crypto market.

Thus, the ripple effect of the event spreads layer by layer.

Ripple Layer One: Short-Term Surge of Binance-Related Assets

The most direct beneficiaries of CZ's pardon are Binance-related assets.

Market data shows that BNB surged from around $1076 to about $1161, with an increase of nearly 8%; as of the time of writing, the BNB price has retreated to around $1126, but the 24-hour increase remains as high as about 15%.

Additionally, the project token ASTER of the on-chain Perp DEX Aster, which CZ previously supported, also experienced a short-term rise, recovering from below $1 to above $1.1, peaking at around $1.48; as of the time of writing, the ASTER price has retreated to about $1.12, with a 24-hour increase of approximately 10%.

This is the first layer of impact from the hot event, namely the targets directly related to the key figure, including but not limited to their projects, recently favored tokens, or related projects they have supported.

Ripple Layer Two: Binance Platform Meme Coins

Furthermore, due to CZ's recent attention and promotion of Meme coins on the Binance platform and BNB Chain, related targets also experienced a wave of short-term increases influenced by this news.

Binance Life rose from $0.23 to nearly $0.28, now retreating to around $0.24;

4 surged from $0.07 to about $0.15, now back to around $0.12, with a 24-hour increase still exceeding 34%.

As speculative hotspots, Meme coins often experience more severe fluctuations due to their relatively small market capitalization, making them more suitable for short-term leveraged operations.

Ripple Layer Three: Stocks of BNB Treasury Listed Companies

The third layer of information transmission involves the corresponding stocks of BNB treasury-related listed companies.

Affected by the news of "CZ receiving a pardon from Trump," according to data from msx.com, the stock price of BNB Network Company (BNC), a BNB treasury listed company, surged from around $7.2 to $8.5; it has now retreated to $7.84, with a 24-hour increase still above 6.5%;

Additionally, the stock price of BNB treasury listed company Nano Labs (NA) also saw a small rise, increasing from $4.7 to $4.99, currently retreating to $4.8, with a 24-hour increase of about 1.16%.

Moreover, the U.S. listed biotechnology company Applied DNA Sciences (BNBX), which previously planned to raise $58 million through PIPE private placement, and the Hong Kong listed company Huaxing Capital (1911.HK), which intends to raise a $600 million fund to invest in BNB, also experienced varying degrees of slight increases, akin to a real-life "Fan Jin Zhong Ju."

Ripple Layer Four: Trump Family Crypto Project WLFI and U.S. Listed Company ALT5 Sigma

This layer of impact is more delayed but still belongs to the direct stakeholders of the hot event.

As a well-known Trump family crypto project, WLFI experienced a tenfold increase in returns during its initial launch but has since declined, even dropping below $0.1 to around $0.07 during the previous "10.11 crash."

However, with the occurrence of the "Trump pardons CZ" event, Trump's crypto-friendly attitude has been further confirmed and recognized by the market, leading to a resurgence of interest in WLFI. Around 1 AM today, OKX market data showed WLFI briefly breaking through $0.146, with a 15% increase within 15 minutes, currently reported at $0.1439; as of the time of writing, WLFI price has stabilized above $0.14, currently reported at $0.1432, with a 24-hour increase of about 13%.

Additionally, WLFI treasury listed company ALT5 Sigma also benefited from this positive news, experiencing a rare increase following the previous "CEO was dismissed by the board" incident. According to data from msx.com, ALT5 Sigma Corporation (ALTS) stock price is currently reported at $2.11, with a 24-hour increase of 13.44%.

Conclusion: Market Reactions Vary, but Ripple Transmission is Inevitable

In conclusion, although the ripple effects of hot events have varying timelines, with some targets reacting more quickly and others more slowly, this is often influenced by multiple factors such as the speed of information dissemination, key transmission nodes, market liquidity, and statements from key figures. However, logically deducing, ripple-like influence transmission is bound to occur.

For retail investors in the crypto market, perhaps the first reaction when encountering similar hot events next time should be to let AI help outline the corresponding ripple effect transmission diagram and use it to find their own arbitrage opportunities based on information asymmetry. When facing someone like Trump, who always provides "TACO" (Trump-style retreat) trading opportunities, this may be the best way to respond.

Of course, we also need to be cautious: ensure that we are not at the edge of the last ripple to avoid becoming the final "good news bag holder."

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