- Binance and KuCoin listed the controversial Pepe meme token.
- Pepe surged 132% on the day of the listing.
- Both exchanges warned users about the risks associated with the token.
With the crypto market on an upswing, memecoins are once again gaining attention. The latest memecoin riding the market hype is the Pepe token.
Sponsored
Pepe holders rejoiced as major exchanges announced listing the controversial memecoin. On Friday, March 5, Binance and KuCoin both revealed they would list PEPE. While both platforms urged users to be cautious, Pepe surged 132% on the day of the listing.
Binance, KuCoin List Pepe
On Friday, May 5, Binance announced that it would list popular memecoins Pepe (PEPE) and Floki Inu (FLOKI). Binance added PEPE to its Innovation zone with spot trading pairs PEPE/USDT and PEPE/TUSD.
Shortly after the Binance announcement, rival exchange KuCoin also listed the Pepe token. KuCoin introduced the PEPE/USDT trading pair.
The listings led to a frenzy in the market, with crypto traders buying up tokens and amplifying the hype. For one, Pepe holders celebrated by sharing Pepe memes in replies to Binanceโs and KuCoinโs Twitter announcements.
Subsequently, the listing contributed to a surge in trading activity, with PEPE’s daily trading volume reaching 284.24%. This led to a surge in the tokenโs price, by an astounding 132% the same day. This way, Binance listing pushed Pepe to a market cap of $1 billion.
Risks With Pepe Token
Despite a surge in price, the frenzy could pose significant risks for traders. Both Binance and KuCoin issued statements emphasizing the risks associated with memecoins like Pepe.
โPepe is a meme coin based on a cartoon character โPepe the Frog,โ Binance explained. โPlease note that the token has no utility, and it is created by an anonymous team,โ the exchange went on to caution the users.
KuCoinโs statement echoed Binance, explaining the tokenโs lack of utility and an anonymous team.
To trade the token on Binance, users must access its Innovation zone, which Binance explains is specifically for โhigh-risk tokens with higher volatility.โ
Users must read and acknowledge the Binance Terms of Use and complete a questionnaire before using the service.
Another major issue for the Pepe token is the potential for a copyright dispute, as Pepe the Frog has a creator and an owner. Pepeโs creator has already successfully targeted blockchain projects using Pepe with legal action.
On the Flipside
- Binance and KuCoin are late arrivals to the Pepe party. Crypto exchange OKX listed Pepe token on May 1. Bitget and Huobi listed the token even before that.ย
- Memecoins are prone to scams and rug pulls. On Thursday, May 4, Wall Street Bets (WSB) memecoin dropped 90% after a developer allegedly rugged the token.
Why You Should Care
Understanding the risks of the memecoin hype is essential to avoid buying at the top and holding the bag.
Read about the potential risks with the Pepe memecoin:
Beware of Pepe the Frog Memecoins: Copyright Issues Could Put Your Investment at Risk
Read about how Coinbase reached impressive figures in the first quarter of 2023: