BNB Chain, Backed by Binance, Faces Frenzy of Meme Coins; Co-Founder Yi He Promises Full Compensation for Sandwich Attack Victims
(Previous Report: Binance Secures $2 Billion Investment from Abu Dhabi Investment Firm MGX, Acquires Minority Stake in Binance)
(Background: GPS Market Maker’s Mass Sell-Off Plummets 80% in Three Days! Binance Announces Freeze of Illegitimate Profits and Promises User Compensation)
The public blockchain BNB Chain, backed by cryptocurrency exchange Binance, has recently experienced a surge in meme coin activity, driven by Binance founder Changpeng Zhao (CZ). According to Defillama, BNB Chain recorded a DEX trading volume of $2.56 billion in the past 24 hours, significantly surpassing Solana and Ethereum.
However, with the rise of DEX trading, well-known community KOLs have criticized BNB Chain for being prone to sandwich attacks. In response, Binance co-founder Yi He posted on X (formerly Twitter) last night (March 17), announcing that BNB Chain has now implemented a sandwich protection feature:
“The anti-sandwich feature is now fully enabled. Thank you for the feedback, please try it out again. If you encounter severe sandwiching, DM sisi within 24 hours for full compensation.”
— Yi He (@heyibinance) March 17, 2025
Binance Officially Offers Full Compensation for Victims of Sandwich Attacks
Simultaneously, Binance’s official Chinese X account also announced that users who suffered losses due to sandwich attacks during Binance Alpha trading from 16:00 on March 17, 2025, to 16:00 on March 18, 2025 (UTC+8), can submit a form to apply for full compensation.
If you suffered losses due to a “sandwich” during Binance Alpha trading between March 17, 2025, 16:00 and March 18, 2025, 16:00 (UTC+8), please fill out the form below ⬇️
https://t.co/VSw0MHPuzB
We will fully compensate eligible users for their losses. Thank you for your continued understanding and support.
— Binance Chinese (@binancezh) March 17, 2025
Binance Wallet Offers 6 Months of Zero-Fee Trading
At almost the same time, Binance’s app announced that its multi-chain semi-custodial wallet designed for DeFi, Binance Wallet, will offer zero-fee swaps for the next six months. Yi He also directly stated:
“Zero fee, give us a chance.”
— Yi He (@heyibinance) March 17, 2025
How Did the Community React?
On X, many community members expressed that their experience using Binance Wallet and interacting with BNB Chain has improved significantly compared to before. However, some noted that sandwich attacks still occurred during trading yesterday. Others revealed that certain traders specializing in sandwich attacks on BNB Chain made as much as $200,000 in just one day.
Additionally, some users commented that sandwich attacks are a technical issue that affects all EVM chains and cannot be completely avoided. They noted that the only solutions are having deep liquidity pools, setting low slippage (which might result in failed transactions), or implementing token fees.
What is a Sandwich Attack?
A sandwich attack is a common type of exploit in DeFi, especially in automated market maker (AMM) protocols. It exploits price slippage in trading pools and the transparency of the mempool. The attack process involves:
- Mempool Monitoring: Attackers monitor the mempool for large transactions.
- Front-Running: Upon detecting a large buy order, such as using BNB to purchase a meme coin, the attacker submits their own buy order to be executed before the target transaction, driving up the token price.
- Increased User Cost: By the time the victim’s transaction is executed, the token price has already increased, causing the victim to pay more.
- Back-Running: After the victim’s transaction is completed, the attacker immediately sells the acquired tokens to profit.
- Result: The victim is “sandwiched” between the attacker’s buy and sell orders, resulting in exploitation.
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