SIREN, the meme coin that stunned the crypto community after a staggering price increase in March, has collapsed by double digits over the past 24 hours.
Some crypto commentators are not surprised by the meltdown since they previously warned that the project could be a scam.
‘Completely Nuked’
It was just several days ago when SIREN’s valuation exploded to an all-time high of around $3.60, while its market cap surpassed $2 billion. The asset climbed the crypto ladder and entered the elite top 50 club after flipping Pi Network’s PI.
As many have alerted, though, its bull run was unsustainable, and SIREN nosedived by a whopping 85% over the past 24 hours, whereas its capitalization fell to a mere $200 million.
X user Honey, who has been among the most vocal critics of the meme coin, claimed the asset’s price has been “completely nuked,” suggesting that Binance may have played a role in the crash. The analyst assumed that the world’s largest cryptocurrency exchange “will keep listing and delisting these traps farming fees off liquidation cascades.”
Honey is not the only one pointing out Binance as the main culprit. X user UMER ( THE BULL ) argued that the company has made millions of dollars by manipulating the SIREN chart.
The token is an AI-driven meme coin based on the BNB Chain and is closely associated with Binance, as it launched on Binance Alpha (the company’s platform for early-stage Web3 projects). Several analysts have explained how such assets may have been manipulated by the exchange.
According to X user Jack TZ, the course of action includes seven steps. First, all of these tokens (such as SIREN) are deployed on BNB Chain and are available as perpetual contracts. Their market caps pump substantially to billions of dollars, while liquidity remains low, “so that no one can buy and take profits.”
The analyst also thinks that Binance makes millions from perpetual long liquidations in the process and then dumps at a specific point while shorting and liquidating large sums again.
“Repeat the process with other tokens on the same BNB chain only. That’s a pure money laundering for someone or playing against their own users while having all the insider information,” they added.
The Other Red Flags
The analytics platform Bubblemaps and the popular blockchain investigator ZachXBT have also expressed their concerns regarding SIREN. A week ago, the former sounded the alarm that a single entity controls roughly half of the meme coin’s supply, warning that “this only ends one way,” while the latter echoed a similar warning.
A quick Google search shows that SIREN is a token inspired by the Greek mythological Sirens. However, its fundamentals and use cases remain dubious (to say the least), while information about the project’s team and goals is lacking.
This is usually a red flag that traders and investors should watch for. They must also be aware that meme coins of that type are primarily driven by hype and notorious for their enhanced volatility, meaning a collapse, as the recent one, can happen at any time.
The post Meme Coin SIREN Crashes 85% in a Single Day: Is Binance Responsible for the Meltdown? appeared first on CryptoPotato.
