December 17, 2024
Binance has announced the listing of two new tokens – the native token of Pudgy Penguins, PENGU, and the meme coin Simon’s Cat.
PENGU will launch on December 17 at 14:00 UTC, with trading pairs including USDT, BNB, FDUSD, and TRY. Simon’s Cat will launch earlier that same day at 09:00 UTC, with similar trading pairs.
Binance Listing Sparks Massive Rally for Meme Coin CAT
The announcement sent Simon’s Cat (CAT) soaring by more than 60%, hitting an all-time high of $0.00006811. The meme coin’s market cap rose to $439 million.
In contrast, PENGU’s listing on Binance marks the first-ever token distribution. At launch, PENGU will have a circulating supply of over 623 million tokens, representing approximately 70.22% of the total supply.
Pudgy Penguins introduced the PENGU token earlier this month but had not previously announced a launch date. The project has gained significant attention due to its association with the popular NFT collection.
Binance’s history with listing new tokens has been somewhat troubling. The exchange recently launched Magic Eden (ME), which experienced sharp declines after its launch.
ME token started trading at $17 but has dropped by about 79%. It is currently around $3.57 due to a mass sell from airdrop beneficiaries.
Popular on-chain analyst Tracer wrote on X (formerly Twitter): “Binance does it again, pumping out the popular meme coin CAT. This news once again proves the#1exchange’s interest in listing meme coins. This pattern will repeat itself over and over again as it is currently very profitable for Binance.”
Similarly, Movement Network’s MOVE token was launched on Binance’s airdrop portal last week. It quickly gained listings on South Korean exchanges Upbit and Bithumb.
MOVE started trading at $0.74, with a trading volume of $450 million in the first 90 minutes, but its price has since dropped by more than 50%. These patterns have raised concerns about Binance’s role in fueling volatile price movements, especially with meme coins.
“Is this Binance’s new strategy in the post-CZ era? Buy low market cap meme coins like NEIRO ($15M) and $ACT ($20M), list them to 50x, then sell them to their users. People deserve to know what’s going on inside the largest crypto organization,” wrote influencer Leonidas.
More than 80% of meme coins listed by exchanges in 2024 saw large price spikes after listing, followed by sharp corrections. Critics argue that these fluctuations resemble pump-and-dump schemes, hurting retail investors.
In addition to these controversies, Binance is facing legal challenges over its PNUT meme coin. Mark Longo, owner of the internet phenomenon Peanut the Squirrel, has filed a lawsuit against Binance. He claims the exchange used Peanut’s image and intellectual property rights without permission.
As Binance continues to expand its token offerings, questions persist about the sustainability and fairness of its listing practices.
