Key Highlights
- CZ said Giggle Academy regularly converts donated crypto into BNB to fund its educational programs.
- He clarified that he had no involvement in the recent token sales and does not personally manage the donation wallet.
- Zhao argued that donors should not expect donated tokens to be burned unless there was a prior agreement.
Binance founder Changpeng Zhao “CZ” has responded to criticism over the sale of meme coins donated to Giggle Academy, saying donated tokens are not meant to remain untouched or be burned after they are transferred to the charity.
In an X post on Thursday, Zhao said that Giggle Academy has long converted most donated tokens into BNB near the end of each month to help fund its free education initiative.
The comments came after some meme coin communities criticized recent token sales from wallets linked to the project. Zhao said he was not involved in the latest transactions and does not control the donation wallet. He added that the policy has been in place for months rather than being a one-time sale, noting that the academy also periodically sells BNB when funds are needed to support its operations.
Why Giggle Academy sells donated tokens
Zhao argued that transferring tokens without a prior agreement gives the recipient full discretion over how they are used. “If you send or donate tokens to someone’s address, without any prior agreement or contract in place, don’t expect the receiving party to act according to your wishes,” he wrote.
He added that expecting a charity to burn donated assets contradicts the idea of donating. According to Zhao, anyone sending tokens to a wallet should also expect that those assets may eventually be sold.
How the token sales support Giggle Academy
Zhao said the proceeds from token sales are used to support Giggle Academy’s educational mission, which he claims has already reached more than one million children in less than two years. He wrote, “If you donate to Giggle Academy, they will sell, and use the proceeds to fund free education for kids all around the world.”
He also pointed users toward the project’s public spending records, saying blockchain transparency allows anyone to verify how the funds are being used.
Questions over CZ’s market influence resurface
Zhao’s clarification drew mixed reactions across Crypto X.
Some users backed Giggle Academy’s approach, arguing that donated tokens should be used to fund its education mission rather than remain idle. Crypto commentator Brian Sumner, who said he donated around 2% of his token supply, defended the sales. “When I donated 2% ($165k) I knew it would be sold. No questions asked. Free education > money.”
Others, however, argued that immediately selling donated meme coins could discourage future contributions by creating additional selling pressure.
Debate over CZ’s market influence returns
The controversy also revived broader discussions about Zhao’s influence on meme coin markets.
Earlier this year, CZ faced criticism after some traders blamed his comments and social media activity for sharp swings in speculative meme token prices. Zhao rejected those claims, saying investors remain responsible for their own trading decisions.
The latest debate reflects similar concerns from some community members, who argue that token sales linked to prominent industry figures can affect market sentiment. Zhao, however, maintained that Giggle Academy has followed the same donation policy for months and that contributors should expect donated assets to be used to support its educational mission rather than held indefinitely.
CZ teases future meme coin activity
Toward the end of his post, Zhao also hinted that he may personally interact with meme coins in the near future.
The comment quickly attracted attention among traders, with some speculating about which projects Zhao could reference, though he did not mention any specific tokens.
While the episode sparked debate over how donated crypto assets should be handled, Zhao maintained that Giggle Academy’s approach has been consistent from the outset: donated tokens are intended to fund education, not remain permanently in treasury wallets.
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