PEPE Jumps 132.31% as Binance, KuCoin List Controversial Token

The Pepe token surges 132% the same day Binance and KuCoin list the token, despite warnings of potential risks.

Pepe the frog peeking out from behind a Binance logo in a swamp.
Created by Gabor Kovacs from DailyCoin
  • 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. 

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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 Binance’s and KuCoin’s 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 token’s 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. 

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“Pepe is a meme coin based on a cartoon character ‘Pepe the Frog,’ Binance explained. “Please note that the token has no utility, and it is created by an anonymous team,” the exchange went on to caution the users. 

KuCoin’s statement echoed Binance, explaining the token’s 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 “high-risk tokens with higher volatility.” 

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. Pepe’s 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. 
  • 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:

What Fueled Coinbase’s Stellar Q1 Earnings?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.