ASTER Allegation Against CZ Debunked by On-Chain Evidence

The Allegation

The allegation began when a social media account published screenshots that purported to show a wallet linked to Zhao offloading 35 million ASTER tokens. The account cited a supposed address and value, and within hours, the story had spread to trading chats and news aggregators.

ASTER’s price plunged nearly 9 percent in some markets as traders reacted to the possibility of a founder sell-off.

Within hours, on-chain analysts turned their attention to the wallet address listed in the screenshots, and what they found undermined the original claim. The address in question, ending in 0x889…2D4E3, was confirmed to be a hot wallet controlled by Binance, not a personal holding of Zhao.

Further scrutiny revealed that the transactions shown in the screenshots were not new sales at all. They appeared to be internal transfers between Binance-controlled wallets, repackaged to look like a sudden dump. Analysts flagged evidence of manipulated timestamps and recycled transaction logs.

In his public response, Zhao called the screenshots “fake news” and urged followers to “unfollow the guys posting fake news.” He highlighted that the blockchain is public and verifiable.

For crypto markets, any hint of a large token sale by a prominent figure triggers fear. ASTER, in particular, is a relatively young protocol token with volatile price behaviour. The sudden suggestion of a founder dump amplified uncertainty. At the time of the claim, ASTER faced token-unlock events and price pressure, which primed the market to react harshly.

The case also reflects how social media influence and rapid information spread can outpace verification. A single KOL (key opinion leader) post generated the initial claim and caught traders investigating liquidity and supply movements off guard.

Following the viral claim, ASTER’s price dropped into the vicinity of US $0.85, down more than 15 percent at one point. Once analysts published their findings, the token staged a partial recovery, trading back above US $0.98.

However, the incident left its mark on sentiment. Even after the clarification, trading volumes remained elevated, and the token’s support levels were re-examined by market watchers. The episode demonstrates how fragile confidence can be in token projects lacking entrenched fundamentals.

This is not the first time Zhao has faced rumours of token activity. Previous accusations linked him to memecoins and large token movements, though those too lacked substantiated on-chain evidence. In each case, the pattern has been the same: claim emerges rapidly, screenshots or images circulate, and closer examination resets the facts.

For CZ and Binance, the repetition of such allegations increases pressure to maintain transparency. The exchange’s public statement confirming the wallet was internal to Binance reflects a proactive stance in rebutting misinformation.

Broader Takeaways for Crypto Participants

For investors in crypto tokens, several lessons emerge from this incident. First, a wallet movement that appears significant may simply be an internal transfer; checking ownership and context matters. Second, screenshots alone can be misleading; on-chain verification tools exist and should be used. Third, token announcements, unlock schedules, and governance disclosures influence market reaction far more than isolated rumours.

In ASTER’s case, the token still faces structural challenges: large unlocks recently and scheduled in the near future raise dilution risk. The false dump claim merely added noise to the underlying vulnerabilities.

Parting Shot

The recent allegation that Changpeng Zhao sold 35 million ASTER tokens sparked substantial market turbulence, but it ultimately collapsed under on-chain scrutiny and public rebuttal. While headline-grabbing social posts can drive reactions, transparent blockchain data remains the definitive arbiter of truth. For ASTER and its ecosystem, the incident serves as a cautionary tale about responding to rumours and ensuring clarity in token movements.