This Viral Meme Coin Explodes by 65% Following Support From Binance: Details
TL;DR
- One viral meme coin surged substantially after Binance launched perpetual contracts for it.
- The exchange has been expanding meme coin services, recently listing Baby Doge Coin, Turbo, and Neiro.
A Double-Digit Spike
Meme coins are known for their enhanced volatility, recording substantial swings in both directions following important developments. The latest example solidifying that thesis is the price explosion of Simon’s Cat (CAT).
The meme coin, inspired by the eponymous animated series and launched on the Binance Smart Chain, witnessed a 65% rally on the daily, while its market capitalization neared $250 million.
The surge was fueled by Binance’s decision to launch 1000CATUSDT perpetual contracts on its futures program. The offering went live on October 21 and allows up to 75x leverage. It supports the multi-assets mode, enabling users to trade the contract across numerous margin assets.
“For example, when the Multi-Assets Mode is activated, users can use BTC as margin when trading the aforementioned perpetual contract,” the company explained.
Perpetual contracts allow traders to speculate on the price movements of a token without actually owning it. They don’t have an expiration date and could be held indefinitely. While such contracts offer opportunities for significant rewards, the high leverage and constant exposure to liquidation make them inherently risky, especially for inexperienced traders.
Binance and Meme Coins
The world’s biggest crypto exchange has been quite open to the meme coin sector lately, adding various services involving such assets.
Most recently, it expanded the list of options offered on Binance Spot by including trading bot services for PEPE/FDUSD. The firm initially embraced the frog-themed coin in May last year.
Last month, Binance listed three additional meme coins on its platform: Baby Doge Coin (BABYDOGE), Turbo (TURBO), and Neiro (NEIRO). Their prices skyrocketed shortly after the disclosure. NEIRO’s spike was the most substantial, with its valuation exploding by 500% on a 24-hour scale.
It is worth mentioning that Binance added the meme coins with seed tags. Tokens in that section represent “innovative projects that may exhibit higher volatility and risks” than other listed assets. The exchange cautioned users to conduct proper due diligence before entering the ecosystem.
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