Memecoins CHEEMS and WHY Drop Sharply Following Binance Futures Listing Announcement

The simultaneous price drop of memecoins CHEEMS and WHY immediately following the announcement of their listing on Binance Futures on November 25, 2024 has attracted a lot of attention in the investment community. Immediately after the announcement of perpetual contracts for both coins (1000WHYUSDT and 1000CHEEMSUSDT), their value dropped by about 50% in just a few minutes. This is in contrast to the previous bullish trend of other memecoins when listed, such as SLERF, which usually saw strong growth [(citation:1)][(citation:2)].

Many investors reacted with surprise to this drop. In particular, some analysts noted that there were signs of "profit-taking" trading activity before the listing announcement, with one wallet selling about $1.05 million worth of WHY tokens [(citation:2)]. This has led to many questions about the transparency of Binance's listing process, with suspicions that the listing information may have been leaked before the official announcement [(citation:2)][(citation:3)].

This event serves to highlight the risks and volatility associated with investing in memecoins, especially in the context of listings on major exchanges like Binance.