Binance Faces Criticism for Listing Two Solana Memecoins, Igniting Debate on Listing Standards
Binance's Memecoin Controversy Intensifies
Binance is under scrutiny following the recent listing of two Solana-based meme coins, ACT I: The AI Prophecy (ACT) and Peanut the Squirrel (PNUT). Both coins experienced dramatic price spikes after their surprise debut. ACT I soared by an astonishing 2100%, while PNUT rose by 354%, fueling allegations of pump-and-dump schemes that harm retail investors.
Critics, including Leonidas, co-founder of a Bitcoin Ordinals explorer, argue that Binance’s opaque listing process disproportionately benefits insiders who manipulate the market to their advantage. Leonidas has spearheaded a petition urging Binance to disclose its listing fees and practices, asserting that its recent trends indicate a shift from its traditionally strict policies.
PNUT, a memecoin inspired by the tragic story of P’Nut, a pet squirrel, gained rapid attention in both financial and public circles, with notable figures like Elon Musk amplifying its story. Launched just days before the U.S. elections, PNUT quickly became a talking point.
Financially, the coin rewarded early investors handsomely; one investor turned $97,000 into $1.8 million, retaining $420,000 worth of PNUT after the surge. Despite its sentimental origins, PNUT’s rapid price movement highlights the volatility and speculative nature of memecoin investments.
ACT I presents a more peculiar case. Originally an AI-driven project, it was abandoned by its developer just two weeks before Binance listed it. Despite lacking active developer support, the coin surged on its listing, boasting a $20 million market cap.
Critics questioned Binance’s criteria, emphasizing the speculative nature of the token. Notably, a trader capitalized on the listing by investing 1,558 SOL (~$318,000) in ACT I, yielding a $3 million profit within an hour as the token’s price skyrocketed. The incident underscores the financial windfalls possible through strategic trading during Binance’s listings, albeit at a risk to broader market stability.
As per on-chain analyst Ai_9684xtpa, Binance’s memecoin strategy in 2024 saw the listing of 15 new tokens, with 12 experiencing significant price surges.
Among the biggest gainers, Neiro (NEIRO) soared by 7,600%, while Moo deng (MOODENG) and Popcat (POPCAT) more than doubled in value. However, not all listings fared well. Myro (MYRO) saw a 33.3% decline, and others like Mog Coin (MOG) and Book of Meme (BOME) posted slight depreciations, highlighting the unpredictable nature of memecoin performance post-listing.
The blockchain distribution of Binance’s listed memecoins further reflects its evolving approach. Of the tokens listed, 60% operate on Solana, 26.7% on Ethereum, and the remainder on BNB Smart Chain and Base network. This diversification suggests a broadening of criteria, emphasizing popularity and community support over traditional market metrics.
Binance Co-Founder He Yi recently addressed rumors, stating that no listing fees were charged for ACT or PNUT. However, calls for greater transparency persist as the exchange faces mounting pressure to clarify its listing practices.
For those exploring Solana’s meme coin market, it’s crucial to understand the ecosystem's dynamics. Our guide on how to buy Solana meme coins offer valuable insights into navigating this volatile space.
This article has been refined and enhanced by ChatGPT.
