Original | Odaily Planet Daily (@OdailyChina)
Author | Wenser (@wenser2010)
At 5:35 PM today, the long-awaited answer to the question 'Which is the next Binance listing project?' was revealed. The BNB chain Meme projects CHEEMS and WHY welcomed their 'highlight moment', both listing on Binance contracts.
Early ambushers were looking forward to another 'price surge', but this time, the script seems a bit different. Following the release of Binance's announcement, CHEEMS and WHY only lasted for one minute, and then the price dropped over 30% in one hour. Even those who previously prided themselves on achieving millisecond-level tracking of Binance 'Formula News' suffered a major loss, losing hundreds of thousands of dollars, and angrily denouncing 'insider traders destroying market sentiment.'
Odaily Planet Daily will briefly track this Binance listing of Meme coin event in this article.
Why did Meme coins not rise but fall after listing on Binance?
As the undisputed 'leading exchange' today, Binance's 'listing effect' has always been praised, and the reason is none other than 'liquidity'.
Previously, according to on-chain analyst statistics, in the past 30 trading days, Binance's trading volume was 10% higher than Nasdaq, 2 times that of the New York Stock Exchange (NYSE), and 16 times that of Coinbase, accounting for about 50% of the global centralized exchange trading volume. It is not an exaggeration to say that Binance is 'the half of cryptocurrency exchanges'. The information on Binance's official website shows that the total number of users has exceeded 240 million and is still growing rapidly. Additionally, according to CryptoQuant analysts, the inflow of stablecoins into Binance reached a historical high of $10.2 billion in the past month.
The large user base and strong liquidity provide ample support for Binance's 'listing effect', and the listings of Meme coins such as ACT and PNUT have been repeatedly validated. However, this time, the news of CHEEMS and WHY being listed on Binance could not continue the previous myth.
After Binance's announcement, WHY's price dropped by 34.84% in 1 hour, with a market value reported at $104 million, and Cheems' market value fell below $200 million, with a 24H drop of 19.82%.
CHEEMS & WHY Short-term Decline Information
Such a dismal situation inevitably brings to mind the biggest possibility behind the market crash—'mouse warehouses'. Is the 'Sell the News' situation of CHEEMS and WHY really a mouse warehouse?
Mouse Warehouse Suspicion: The Various Faces of the Crypto Market
Based on the currently known information, the possibility of mouse warehouse phenomena during this Binance contract listing is low. The following are some on-chain data information:
According to data disclosed by X user @_Allan_Wei_2022, after Binance announced the listing of CHEEMS and WHY contracts, the trading situations of two large holders were as follows: The first large purchase of CHEEMS came from address 0x94d5Dec1796404ff3544FB09461AF0bC3fb3c2F6, with a total investment of about $200,000. However, this address was unable to profit from the volatility and ultimately exited with significant losses.
The first large purchase address for WHY was 0x03b7C1414857Ae0bCa09116d4A01175D4d9B86ad, also investing about $200,000. Unfortunately, during the transaction, it encountered the on-chain trading bot 'MEV sandwich attack' (a strategy of front-running trades and subsequently raising prices), ultimately selling quickly after buying, with a loss of $25,000.
The previous ACT listing made a profit of $3 million with 'millisecond-level trading operations', while in this incident, it became a 'loser' who 'spent all day hunting geese but got pecked in the eyes by the geese'.
30 minutes after the listing announcement was released, Formula News published on the official channel: 'To the insider traders participating in Binance's perpetual contract listing, please sell your chips more slowly next time. The collapse of WHY and CHEEMS caused by you has resulted in 100% negative returns for all participants in the transaction, and you are destroying the trading sentiment.'
Screenshot from the official channel of the formula
Of course, on-chain data also reveals another side of the information:
According to Lookonchain monitoring, 3 days ago, a whale with $6.4 million spent 400 BNB (worth $247,000) to buy 14.7 trillion WHY, with the address 0xa65ce1d604fa901c13aa29f2126a57d9032e412b, which currently has remaining assets of $5.21 million.
According to Onchain Lens monitoring, a newly created wallet withdrew 552 BNB ($363,000) from Binance yesterday to buy 11.7 trillion WHY and transferred it all to Gate, with the address 0x343997539c568b601559e73b977861babf2c1708. This address transferred all WHY to 0x8964a164a0e890ccf6a69e6bb00e1cb5774f3e98 yesterday and sold out at 6:43 PM today, obtaining a total of $567,600, with a profit of $204,600, as seen in the on-chain records.
Additionally, according to on-chain data, 0xbb8365B1BA2462ffDce9C894Ada84478f474Fefc bought 57 billion CHEEMS four days ago and sold all of it within one minute of the listing company's announcement, ultimately making a profit of about $1.21 million, as seen in the on-chain records.
Whether these addresses are truly 'smart money' or 'mouse warehouses' is subjective.
Summary: Binance's listing pace may slow down
In a previous article (Coinbase Under 'Attack'? Unveiling the Unsolved Mystery of Listing Fees), we explored Binance and Coinbase's differing attitudes and internal processes regarding listing fees.
Among them, Binance's (Token Listing Tips) announcement mentioned that Binance's token listing announcements are divided into application forms, scoring items, deducting items, contacting Binance, evaluations, fees, and other aspects of explanation. Additionally, in previous responses regarding the 'listing process', Binance co-founder He Yi also stated that 'Binance's listing is composed of four stages: business, research group, committee, and compliance review. According to exchange compliance requirements, all Binance employees must complete relevant mandatory compliance training. At the same time, Binance has an independent audit team to investigate such violations. If information leakage or insider trading is suspected, Binance will immediately initiate judicial procedures to transfer relevant personnel to judicial authorities, and serious cases will face criminal liability.'
Today, the 'listing storm' of CHEEMS and WHY makes one ponder: perhaps it is time for Binance to slow down its listing pace while balancing market hotspots and community focus?
