Original｜Odaily Planet Daily (@OdailyChina)
Author: Wenser (@wenser 2010 )
At 5:35 pm today, the long-awaited "Which project will be listed on Binance next?" guessing game was announced. BNB chain meme projects CHEEMS and WHY ushered in their "highlight moments" and were both listed on Binance Futures.
Early ambushers were looking forward to another "price surge", but this time the script seemed a little different. With the release of the Binance announcement, CHEEMS and WHY only lasted for a minute, and then the price fell by more than 30% in 1 hour. Even "Equation News", which once claimed to be able to achieve millisecond-level tracking of Binance, suffered a big setback, losing hundreds of thousands of dollars, and angrily denounced "the existence of insider traders destroying the trading market sentiment."
Odaily Planet Daily will briefly track the Binance launch of Meme coin in this article.
After listing on Binance, why did Meme Coin fall instead of rising?
As the undisputed "exchange leader" today, Binance's "coin listing effect" has always been praised, and the reason is nothing but "liquidity".
Previously, according to statistics from on-chain analysts, Binance's trading volume in the past 30 trading days was 10% higher than Nasdaq, twice 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 no exaggeration to say that Binance is "half of the cryptocurrency exchange." Information on the Binance official website page shows that the total number of users has exceeded 240 million and is still growing rapidly. According to CryptoQuant analysts, Binance's stablecoin inflows hit a record high of $10.2 billion in the past month.
The huge user base and strong liquidity provide sufficient support for Binance's "currency listing effect", and the listing of Meme coins such as ACT and PNUT has been verified time and time again. But this time, the news of CHEEMS and WHY listing on Binance failed to continue the previous myth.
After the Binance announcement, the price of WHY fell 34.84% in one hour, and its market value was temporarily reported at US$104 million. The market value of Cheems fell below US$200 million, with a 24-hour drop of 19.82%.
CHEEMS WHY Short-term decline information
Such a tragic situation makes people think of the biggest possibility behind the market crash - insider trading. Is the "Sell the News" situation of CHEEMS and WHY really insider trading?
Insider trading suspicion: the various aspects of the crypto market
Based on the currently known information, it is unlikely that there is insider trading in the Binance Futures listing. The following is some on-chain data information:
According to data disclosed by X user @_Allan_Wei_2022, after Binance announced the launch of CHEEMS and WHY contracts, the trading situation of the two major investors is as follows: The first large purchase of CHEEMS came from the address 0x94d5Dec1796404ff3544FB09461AF0bC3fb3c2F6, with a cumulative investment of about US$200,000. However, the address failed to profit from the volatility and eventually left the market with a "halved" loss, with heavy losses.
The first large purchase address of WHY was 0x03b7C1414857Ae0bCa09116d4A01175D4d9B86ad, which also invested about $200,000. Unfortunately, during the transaction, it encountered the "MEV sandwich attack" (i.e., the strategy of preemptive trading and subsequent price increase) by the on-chain trading robot, and finally sold it quickly after buying, with a loss of only $25,000.
"Equation News", which had made a profit of 3 million US dollars by relying on "millisecond-level transaction operations" when ACT was listed, became a "loser" in this incident, who "spent the whole day hunting geese but got pecked in the eye by the geese".
30 minutes after the announcement of the listing, Formula News posted a message on its official channel: “To insider traders who participated in the Binance perpetual contract listing, please sell your chips slowly next time. The collapse of WHY and CHEEMS caused by you this time is a 100% negative return for all those involved in the transaction. You are destroying the mood of the transaction.”
Screenshot of Formula One official channel
Of course, the on-chain data also reveals another side of the story:
According to Lookonchain monitoring, 3 days ago, a whale with $6.4 million spent 400 BNB (worth $247,000) to buy 1.47 trillion WHY. The address is 0xa65ce1d604fa901c13aa29f2126a57d9032e412b. The current remaining assets of this address are $5.21 million.
According to Onchain Lens monitoring, a newly-built wallet withdrew 552 BNB (US$363,000) from Binance yesterday to buy 1.17 trillion WHY, and transferred all of them to Gate. Its address is 0x343997539c568b601559e73b977861babf2c1708. This address transferred all WHY to 0x8964a164a0e890ccf6a69e6bb00e1cb5774f3e98 yesterday, and sold them all at 6:43 this evening, earning a total of US$567,600 and making a profit of US$204,600. The on-chain record can be found here.
In addition, according to the on-chain data, 0xbb8365B1BA2462ffDce9C894Ada84478f474Fefc bought 570 billion CHEEMS four days ago and sold them all within 1 minute after the listing company issued the announcement, with a final profit of approximately 1.21 million US dollars. The on-chain record can be found here.
Whether the above addresses are truly "smart money" or "insider trading" depends on one's own opinion.
Summary: Binance’s coin listing pace may slow down
In the previous article (Coinbase under siege? Uncovering the unsolved mystery of exchanges’ listing fees), we discussed the different attitudes and internal process settings of Binance and Coinbase regarding listing fees.
Among them, Binance's (token listing tips) announcement mentioned that Binance divided the token listing announcement into application forms, bonus items, deduction items, contact with Binance, evaluation, handling fees and other aspects. In addition, in the previous response to the "currency listing link", Binance co-founder He Yi also said that "Binance's coin listing consists of four links: business, research group, committee, and compliance review. In accordance with the exchange's compliance requirements, all Binance employees need to complete relevant mandatory compliance training. At the same time, Binance also has an independent audit team that specializes in investigating such violations. If it is verified that there is information leakage or suspicion of insider trading, Binance will immediately initiate legal proceedings to transfer the relevant personnel to the judicial authorities, and serious offenders will face criminal responsibility."
Today’s “coin listing controversy” of CHEEMS and WHY makes people wonder: Perhaps it is time for Binance to slow down its coin listing pace while taking into account market hotspots and community focus?
