Binance’s Meme Coin Listing Triggers Concerns Over Insider Trading

Key Takeaways

• Binance announced the listing of two new meme coins.
• The ensuing increase sparked concerns about insider trading.
• What’s next for the prices of the two Solana meme coins?

On Nov. 11, Binance announced the listing  of Act I: The AI Prophecy (ACT) and Peanut the Squirrel (PNUT) Solana meme coins. Both have the seed tag applied. The meme coins are only listed for spot trading with the USDT pair.

The listing follows a trend of Binance focusing almost exclusively on meme coins has sparked concerns of negligence and insider trading, since both meme coins reached all-time highs shortly after the announcement.

Let’s analyze the circumstances surrounding the listing and the price action to see what’s likely soon.

Binance Lists Meme Coins

The listing did not go well with the community on X. Some are disappointed  that Binance is not listing larger cryptocurrencies such as PulseChain.

Leonidas listed several issues , more specifically stating that insiders front-ran the announcement and made over $100 million. He also noted that both are poorly distributed and that Binance provided no transparency into the listing fee.

Both meme coins increased rapidly after the announcement, reaching new all-time highs, confirming the concerns about them being low-cap meme coins without much liquidity.

The PNUT increase is especially worrisome since most of it happened slightly before the announcement.

A whale wallet spent  $3 million to buy PNUT and ACT at the time of the announcement and is already up over 100%, further adding fuel to the insider hypothesis.

Definalist notes  that they are the wallet in question. The purchase was made after scanning the data of five previous wallets  associated with the MOODENG listing. They believe they have now identified the insider wallet.

With that in mind, let’s consider their price action and see what lies ahead.

ACT Reaches New Highs

The ACT price increased rapidly shortly after the listing but had increased since November 3.

The move is likely part of a five-wave upward movement (black), with ACT currently in wave 3.

ACT has already reached the 4.61 external Fibonacci of the previous decline (black). So, the price may have reached a local top.

If this is the case, ACT could decline toward the 0.382 Fibonacci support level at $0.243 before increasing and completing its final upward movement.

The target for the top of the increase will become clearer once wave four is over.

PNUT Price Breaks Out

The PNUT price movement has similarities to ACT, especially when looking at the wave count. Both are likely in wave three of their five-wave upward movements.

PNUT broke out from a descending parallel channel on Nov. 11 and has increased rapidly since.

If wave three is 1.61 times the length of wave one, PNUT can reach a high of $0.58 before correcting. This extension is the most common for wave three.

Then, PNUT could begin a corrective wave four before starting another increase toward the highs.

New Highs Likely

The ACT and PNUT prices reached new all-time highs shortly after their listing.

While they could begin short-term corrections, the wave count for both suggests that another upward movement is likely before the top.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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