Original | Odaily Planet Daily (@OdailyChina)
Author: Golem (@web3_golem)
On November 11, Binance announced the launch of spot trading of Meme coins ACT and PNUT. Subsequently, PNUT rose by 250% in a single day, and ACT rose by 2000% in a single day. The market value rose from 20 million US dollars to more than 300 million US dollars in a few hours. After the launch of Neiro, the "uppercase and lowercase Meme coin", Binance's move once again caused a fierce reaction from the market and the community. Some voices questioned the existence of a conspiracy group behind it, while others actively supported Binance to support the community and attempted to find and ambush the next Meme coin that could be listed on Binance.
So, why has Binance, which once kept its distance from Meme Coin, recently frequently supported Meme Coin? Is it following the bull market rhythm or catering to the popular track? Is it lowering the listing standards or "the victory of the community"? In this article, Odaily Planet Daily will analyze the reasons behind Binance's listing of Meme and whether Meme Coin can achieve a win-win situation for Binance and the community.
Why Binance recently launched Meme Coin
The first half of 2024 is a year in which the cryptocurrency circle disenchantment with VC and altcoins. Retail investors gradually realize that tokens with high valuations and low initial circulation leave almost no profit margin for secondary traders after TGE. Coupled with the market selling pressure caused by VC unlocking tokens, tokens backed by VCs are gradually losing their credibility in the market.
In this context, Binance, as the "crypto market liquidity headquarters", has also been pushed to the forefront of public opinion. Some users have listed the performance of VC coins launched on Binance in the first half of 2024, and many tokens have fallen by more than 50% after they were launched. Therefore, the voices in the market that Binance has joined forces with VCs and project parties to "cut community leeks" and madly suck blood from users are getting louder and louder, which has also damaged Binance's image and reputation in the hearts of users.
The performance of new coins listed on Binance as summarized by the community, data as of August
Listing Meme Coin can be regarded as a good prescription given by Binance to itself.
The clues supporting Meme Coin can perhaps be traced back to Binance Research’s report on “High Valuation, Low Initial Liquidity Tokens” released in May, which pointed out that VC coins launched in 2024 generally have a trend of high token valuations but low circulating supply and the pressure of token unlocking on the market. In addition, the report also pointed out the superiority of Meme Coin. Most Meme Coins are not only fully circulated, but also have an MC/FDV ratio of 1. Holders will not be diluted by token issuance. Even if these tokens lack practicality, these characteristics make retail investors interested in Meme Coin.
Although the report did not cause much reaction in the market at the time, it now seems to prove that Binance had already paid attention to Meme Coin and recognized its appeal to users. Later, Binance co-founder He Yi published articles on Binance Square for two consecutive days in June. He first clarified to the community that Binance did not have pricing power, and then said that the ICO in 2017, the IEO in 2021, the nesting dolls, and even the wool-pulling strategy in 2023 may no longer be suitable for the current market, and implicitly asked whether it would be a healthier market without VC investment and fewer project parties?
The following story is known to everyone. Binance launched both uppercase and lowercase Meme coins Neiro, officially starting the Meme coin journey. (Related reading: (Neiro and NEIRO are both listed on Binance, is the Meme coin track ushering in a turning point?))
Although Binance's launch of Neiro and a series of Meme coins thereafter have also been controversial, compared to the previous launch of VC coins, which faced accusations from all users, Meme coins have restored Binance's image and reputation in the community. This time, Binance's reputation among users has risen again by launching the token ACT, and there have even been positive comments such as "miracles only appear on the chain + Binance".
After several months, Binance’s community image “self-rescue” has received positive responses.
Meme Coin is more accessible
In addition to restoring confidence, the greater accessibility and wealth effect of listing Meme coins in a bull market compared to listing VC-backed altcoins may also be an important reason for Binance to list Meme coins. Binance Research Institute released a report on November 4th stating that in addition to being fairer, Meme coins also provide a more acceptable narrative for everyday investors. Retail investors can understand Meme coins faster than technically complex L2 or DeFi.
Especially for breaking the circle, Meme coins can build communities and promote user speculation faster than altcoins, converting potential users. Compared with on-chain purchases, exchanges have a more convenient and direct purchasing experience, which may really bring incremental users and funds to exchanges in the bull market.
Is there something fishy behind the launch of Meme Coin?
After Binance regained its credibility by vigorously supporting the development of Meme coins, there were also voices that believed that Meme coins were more susceptible to insider trading and "conspiracy groups" than VC coins. Before Binance launched ACT and PNUT, it was suspected that some users on social media and the chain knew the inside story.
One day before Binance announced the launch of PNUT, a user posted on the X platform saying "Binance will launch PNUT tomorrow, start buying now", and then when people came to their senses, the account had been cancelled.
The community has even greater doubts and "conspiracy theories" about ACT. Some users have found multiple addresses on the chain that bought 4,000 to 10,000 US dollars of ACT within 5 hours before the announcement. At the same time, there are conspiracy theories about ACT's listing on Binance itself - some people speculate that Binance is the market maker of ACT, and some people speculate that there are other conspiracy groups behind ACT or that Chinese-speaking KOL 0xWizard knew the inside information in advance.
Image source: Internet
In response to the doubts, Binance co-founder He Yi posted on the X platform that the listing fees for ACT and PNUT are both 0. 0xWizard also clarified that he was not aware that Binance would list ACT on that day, and that this was a complete victory for the community.
As the "largest exchange in the universe", the standards and norms for listing on Binance have always been an enduring topic. Binance and He Yi have also made many disclosures in this regard. When the listing of "uppercase and lowercase meme coin" Neiro on Binance caused controversy, He Yi published a statement that Binance listing consists of four links: business, research group, committee, and compliance review. The listing standards are that the project itself has users and traffic, long life, low market value, and solid business logic; He Yi also explained the issue of Binance listing many times afterwards, including that if the project does not pass the screening process, no matter how much money or percentage of coins are given, it cannot be listed on Binance; He Yi is not the final decision maker of the listing process, and listing on Binance Futures does not guarantee spot listing, etc.
However, whether there is any trick behind Binance's listing of Meme Coin is still a difficult matter to explain no matter how many times it has been clarified. Because in the field of investment, there are many uncertainties and luck factors. When people are eager to find rationality for something or find excuses for their investment failures, they may confuse the cause with the effect and magnify the coincidence infinitely.
But in this market where there are always opportunities, for speculators, discussing whether there is a conspiracy behind Binance listing coins may not be the most important thing. The important thing is to ambush those meme coins with a market value of about 20 million US dollars, active communities, evenly distributed chips, and good narratives in advance. What if Binance takes a fancy to them? (Related reading: (What is the next meme coin expected to be listed on Binance?))
Can Meme Coin make Binance and the community win-win?
On-chain analyst @ai_ 9684 xtpa released a market performance overview of the meme coins launched on Binance in 2024 on November 11. In sharp contrast to the price performance of the VC coins launched on Binance in 2024, the meme coins listed on Binance have an obvious "listing effect". The lowercase Neiro has increased by more than 7000%, and ACT has increased by more than 2000% on the day of its launch on November 11.
Such a considerable rate of return is also the reason why users are flocking to Binance to launch Meme coins. From the results, Binance has achieved a win-win situation by launching Meme coins at this stage. For Binance, it has successfully restored its reputation in front of users and further enhanced the influence and voice of the platform. The intervention of large exchanges can even re-arrange the order of the top two in the track; for users, first-level and second-level users still have a large profit margin after buying the coins after listing.
But how long can this situation last? Murad, the "new Meme Godfather", said that the Meme coin asset category is rapidly being divided into two subcategories: PvP and PvE, but Meme coins with PvE characteristics are rare in the market, and most Meme coins are just products of PVP. Some users think that when Meme coins are listed on Binance, they will be out of PVP, but is Binance just a larger PVP pool than the one on the chain? Binance currently has only dozens of Meme coins online, and once Meme coins are saturated in Binance like VC coins, it may also lead to a reduction in the room for growth.
In this round of cycle, whether it is primary new issuance or airdrop, VC-backed altcoins have lost their wealth effect, so few people talk about DeFi, GameFi, and Restaking. Blockchain developers embrace financial nothingness in large numbers and turn to the Meme world. Is such a currency circle really a win-win and popular choice?
On September 17, He Yi discussed the industry cycle in a long article published on Binance Square and wrote: "We are the pigs in the wind. We have stepped on the pulse of the times and stood together with our users to reach the Binance of today." This is indeed the case. Everything Binance does may not be entirely correct, but it must be what the market and the community need.
Perhaps in the future, when the Meme coin market is saturated, blockchain will experience a "technological renaissance" and call for attention to value coins. By then, what choice will the market and Binance make?
