Why can BOME increase by 500 times? You need to understand the game rules of the primary and secondary markets.

BOME’s surge didn’t happen out of nowhere. To understand how this meme coin achieved a 500x increase, first, you need to grasp how the primary and secondary markets operate in the cryptocurrency space.

Primary Market: The Birthplace of New Coins

The primary market refers to the initial issuance phase of new crypto assets. When a project launches, the team distributes tokens directly to early investors through pre-sales, ICOs, or other methods. This stage has several characteristics:

• Prices are set by the project team, usually far below secondary market prices
• Investors purchase directly from the project, with funds going to development
• Participants include seed investors, private equity firms, and retail investors participating in pre-sales

BOME’s primary market employs a unique mechanism. Participants send SOL tokens to a designated address on the Solana chain without a fixed price. The system allocates tokens based on each person’s contribution ratio—total supply is about 6.9 billion tokens, with 50% allocated for pre-sale. All pre-sale tokens are distributed according to contribution proportions and then adjusted with a 1.5x multiplier.

The initial liquidity pool price is set at $0.0000496. This starting point may seem insignificant, but once the token hits the secondary market, market supply and demand quickly push the price higher, creating conditions for exponential growth.

Secondary Market: Prices Dominated by Supply and Demand

The secondary market refers to the trading of tokens on exchanges. Once tokens are unlocked from the primary market, investors can freely buy and sell on trading platforms. In this phase:

• Prices are determined by market supply and demand, not the project team
• Larger trading volume and better liquidity lead to more volatile price swings
• Participants include traders, arbitrageurs, and retail investors

After BOME entered the secondary market, a large influx of buy orders drove the price up. From the initial price to today, the increase has reached hundreds of times. This explosive growth stems from:

1. Arbitrage motivation among primary market participants (buy low, sell high)
2. FOMO-driven retail investor entry
3. Support from liquidity pools

The Fundamental Difference Between Primary and Secondary Markets

The logic of первичный и вторичный рынок ценных бумаг applies equally in the crypto world:

• The primary market is a fundraising stage, with funds flowing into the project
• The secondary market is a circulation stage, with funds moving among investors
• Primary market prices are low but carry higher risks; secondary market prices are higher with more transparent information

Caution: Not All Projects Are BOME

BOME’s success has attracted many followers. But it’s crucial to recognize:

Risk Warning: Participating in new projects during the primary market requires careful due diligence. Data shows that out of tens of thousands of new tokens, only a very small percentage are profitable. Currently, there are many:

• Shitcoins (no real utility)
• Scam tokens (project teams run away)
• Clone coins (copied well-known projects)

Recently, fake pixel-art project websites claiming free airdrops have emerged. Such phishing scams are rampant. Advice: If you decide to participate in the primary market, the safest approach is to only use funds you are willing to lose and conduct thorough research on the project’s background, team, and mechanisms.

Understanding the difference between primary and secondary markets is the first step to avoiding blind followings in the crypto world. While BOME has succeeded, replicating this miracle is extremely unlikely—caution should always come first.