This Viral Meme Coin Explodes 65% After Binance Support – Details

TL;DR

A viral meme coin rose substantially after Binance launched perpetual contracts. The exchange has been expanding meme coin services, recently including Baby Doge Coin, Turbo, and Neiro. A double digit spike

Meme coins are known for their enhanced volatility, registering substantial swings in both directions after major developments. The last example that consolidates this thesis is the price explosion of Simon’s cat (CAT).

The meme coin, inspired by the anime series of the same name and launched on the Binance Smart Chain, witnessed a 65% increase on the day, while its market capitalization approached $250 million.

Price CAT, Source: CoinGecko

The surge was fueled by Binance’s decision to launch 1000 CATUSDT perpetual contracts in its futures program. The offer was launched on October 21 and allows leverage of up to 75 times. It supports multi-asset mode, which allows users to trade the contract with numerous margin assets.

“For example, when Multi-asset mode is enabled, 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 have no expiration date and can be kept indefinitely. While these 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 largest crypto exchange has been quite open to the meme coin sector lately, adding several services involving these assets.

More recently, it expanded the list of options offered on Binance Spot to include trading bot services for PEPE/FDUSD. The firm initially adopted the frog-themed currency 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 rise was the biggest, with a valuation exploding 500% on a 24-hour scale.

It is worth mentioning that Binance added the meme coins with seed tags. The tokens in this section represent “innovative projects that may present higher volatility and risks” than other listed assets. The exchange warned users to do their due diligence before entering the ecosystem.

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