- BOME’s market cap shrank by more than 60% from the peak.
- Allegations of insider trading and SLERF mishap impacted BOME’s sentiment.
“What goes up must come down!” While this popular adage might sound too simplistic, it perfectly sat well with the story of memecoin BOOK OF MEME [BOME].
After stunning the market with its meteoric growth last weekend, the Solana [SOL]-based coin crashed nearly 50% in the past 24 hours, according to CoinMarketCap. Moreover, its market cap has shrunk by more than 60% from the peak as of this writing.
Source: CoinMarketCap
So, what went wrong with a token that racked up more than a billion in valuation overnight?
The rise and fall of BOME
Originating from a presale campaign, BOME was airdropped to interested users after they deposited SOL coins to a designated address. This not only helped to seed the project but also generated significant hype before it was released to the public.
Since then, demand for BOME started skyrocketing, with several prominent crypto exchanges, including Binance, deciding to list the memecoin.
A “shitcoin” as referred to by none other than the project creator DarkFarms, jumped 22x in value in no time, thanks entirely to a social media frenzy.
However, the meteoric rise planted seeds of suspicion in the market. On-chain data tracker LookonChain flagged a large purchase of BOME tokens hours before Binance announced that it would list the memecoin.
Following the listing, BOME soared by over 1500%. This raised concerns of insider trading.
While Binance launched an internal investigation and stated that the concerned user was not affiliated to it, the whole incident impacted the sentiment around the coin.
Furthermore, the botched up presale campaign of a different Solana-based memecoin, Slerf [SLERF], raised another red flag for BOME holders.
The team behind the coin said that they “accidentally” burned $10 million worth of funds raised through the campaign.
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Meanwhile BOME’s largest investor continued to profit-take aggressively. Sundayfundsy.sol, who raised 1.43 billion BOMEs during the presale, let go of another 250 million of its holdings on the 18th of March.
The trader still had more than 992 million tokens in their kitty. Further profit-taking by this entity could likely decide BOME’s next moves on the price chart.