On November 11, the latter half of the day was themed around “surge,” while the most talked-about event in the first half was undoubtedly Binance’s listing of two low-market-cap tokens, ACT and PNUT.
Before the announcement, the market cap of the ACT token was around $20 million. However, within just eight minutes after the listing announcement, its market cap skyrocketed tenfold. Who managed to buy the token immediately after receiving the news and capitalize on this surge?
According to monitoring by Lookonchain, a savvy trader earned over $3 million in just one hour by tracking Binance’s newly listed tokens.
Just seconds after Binance announced the listing of ACT, this trader spent 1,558 SOL (approximately $320,000) to purchase 10.9 million ACT tokens, which are now valued at $3.4 million, resulting in a profit exceeding 20 million RMB within just ten minutes!
Some users have raised concerns, suggesting that this is a case of “front-running” or insider trading, as the trader purchased the tokens seven seconds before the Chinese announcement was made.
The allegations of insider trading sparked significant discussion until the “Equation News” team stepped forward to claim the transaction, explaining the timing discrepancy: the English announcement from Binance was released before the Chinese version. They monitored the English announcement and executed the trade just 2.4 seconds after it was published.
While the massive profits are enviable, this specific trading strategy known as “news trading” has come back into focus. By writing scripts, renting servers, and creating automated trading programs to monitor new listings on Binance and Upbit, traders can often secure substantial profits by being “one step ahead.” In cases where low-market-cap tokens surge tenfold, the rewards can be astronomical.
Opportunities are always available for those who are prepared. Vida, the founder of Equation News and better known by his online alias “00后富一代,” is a well-known news trader rumored to have achieved significant gains through this strategy in the previous market cycle. His ability to buy quickly is no coincidence; he has researched Binance’s listing strategies and summarized his findings as follows:
High Volume and Community Interest: Tokens with high trading volume and community engagement on exchanges like OKX or Bybit, regardless of whether they are VC-backed or meme coins, are likely to be listed first as contracts. This is to prevent Binance users’ liquidity from creating wealth effects for other exchanges.
Low Volume MEME Tokens: Tokens with low trading volume on OKX and Bybit are more likely to be listed as contracts or spot trades to capture profit-driven traffic and enhance their community reputation.
After making substantial profits from this “news trading,” he also took a moment to commend Binance’s listing strategy in response to co-founder He Yi’s tweet about zero listing fees for ACT and PNUT.
Testing Potential Outcomes:
Traditional news trading has become highly competitive, with strategies like dedicated phone lines and offices located near stock exchanges implemented to gain every possible second. However, while “news trading” in Web3 can also be highly profitable, it comes with barriers that make it difficult for ordinary people — such as needing programming skills to write monitoring scripts and automated trading programs. A single mistake could lead to significant losses, along with the necessity of renting expensive servers to ensure timely access to information.
The hope is that these “news trading” methods will inspire others, and may we all profit in this bull market.