- BOME’s market capitalization shrank by more than 60% from its peak.
- Allegations of insider trading and SLERF accidents impacted BOME sentiment.
“What goes up must come down!” While this popular saying may sound too simplistic, it fit the story of memecoin perfectly BOOK OF MEME [BOME].
After stunning the market last weekend with its rapid growth, the Solana [SOL]-based coins have crashed by almost 50% in the last 24 hours CoinMarketCap. Furthermore, at the time of writing, the market capitalization has shrunk by more than 60% from its peak.
Source: CoinMarketCap
So what went wrong with a token that gained over a billion in appreciation overnight?
The rise and fall of BOME
Born from a pre-sale campaign, BOME was dropped to interested users after they deposited SOL coins at a designated address. This not only helped get the project started, but also created significant hype before it was released to the public.
Since then, demand for BOME began to skyrocket, with several prominent crypto exchanges, including Binance, deciding to list the memecoin.
A “shitcoin” referred to by none other than property developer DarkFarms has increased 22x in value overnight, thanks entirely to a social media frenzy.
However, the rapid rise created distrust in the market. Data tracker on the chain Check outChain marked a major purchase of BOME tokens, hours before Binance announced it was launching the memecoin.
After the listing, BOME rose by more than 1500%. This raised concerns about insider trading.
While Binance launched an internal investigation and stated that the user involved was not involved, the entire incident affected sentiment around the coin.
Additionally, the failed presale campaign of another Solana-based memecoin, Slerf [SLERF]raised another red flag for BOME holders.
The team behind the coin said they “accidentally” burned $10 million worth of money raised through the campaign.
How much are 1,10,100 SOLs worth today?
Are whales looking for exit liquidity?
Meanwhile, BOME’s largest investor continued to take aggressive profits. sundayfundsy.sol, which raised 1.43 billion BOMEs during the pre-sale, let go of another 250 million of its assets on March 18.
The trader still had more than 992 million tokens in his possession. Further profit taking by this entity could likely determine BOME’s next moves on the price chart.