One PALU whale invested $100,000 in the new BNB meme coin shortly before CZ made a viral post about it. This made the asset spike in value, bringing huge gains for the whale.
There has been some social media chatter about insider trading, but this could also be a coincidence. Ultimately, today’s scam-ridden crypto culture makes once-scandalous allegations seem perfectly normal.
Was CZ Involved With PALU?
The BNB meme coin ecosystem has been booming in recent weeks, threatening to take over Solana’s place as the top blockchain for these assets. This morning, a new meme coin, PALU, grew dramatically after two key events: Binance Alpha listed the token, and CZ, the former CEO of Binance, shared a PALU meme.
Sponsored
Sponsored
Together, these happenings caused a massive rally for PALU, which has gained around 19% in the last 24 hours despite momentary price dips. However, one on-chain analyst noticed a possible point of concern:
Specifically, one wallet bought around $100,000 worth of PALU just a few minutes before CZ made his post. This meme was viewed around 1.7 million times and counting, bringing a ton of notoriety to the token.
In other words, this PALU whale’s investment paid off immediately, netting them at least $1 million in gains and counting.
A Lack of Clear Evidence
This has left a bit of a mixed reaction in the community. Was it a lucky coincidence, or was insider trading at play? If there was, was CZ himself actually involved? CZ has a massive influence over BNB meme coins, and PALU is a mascot that closely resembles the former CEO.
It’s natural that token developers would hope for him to recognize the project.
Furthermore, claims that CZ had direct participation in PALU price manipulation seem a little far-fetched. Sure, the man has a history of controversies; he’s been to federal prison and has been allegedly implicated in some backdoor deals with the Trump administration.
Compared to that, doesn’t a $100,000 investment seem like small potatoes for him? Even if CZ did coordinate with PALU developers to perfectly time his tweets, that seems like a convoluted way to make a relatively small payout. In this case, it might really be a coincidence.
Still, it’s impossible to say right now, and we may not ever get a firm answer. Today’s climate of scams and “crime is legal now” atmosphere have left everyone a little paranoid, especially when criminals are constantly innovating.
Unfortunately, insider trading allegations may be part and parcel of the meme coin sector moving forward.
