Binance, one of the largest crypto exchanges in the world, has become one of the first major exchanges to list a meme token trading pair. The exchange announced that it would launch a trading pair for Shiba Inu and Dogecoin meme coins. According to the announcement, the listing went live on 2021-11-02 at 08:00 AM (UTC).
A Major Milestone
With the listing, it makes Binance the first major crypto exchange globally to offer a trading pair for these meme coins. It comes at a time when the price of both coins has seen a huge surge in demand. This is although these coins do not have ‘intrinsic’ value according to their critics.
A Struggle Of Two Meme Tokens
Shiba Inu was created by its founders as a direct competitor to Dogecoin. A few months ago, its price began rising and it has since become one of the fastest-growing coins. In just a few months, its price has grown thousands of times. For instance, it was revealed via Twitter that someone who bought $8,000 worth of SHIB coins in August 2021, had seen their value grow to over $5.7 billion. That made it the greatest known trade of all time. Dogecoin has also experienced a rally in 2021. A good chunk of that can be attributed to tweets by Elon Musk, who has been hyping the coin online. Besides that, other celebrities have been pushing the coins.
The popularity of these two ‘dog coins’ has led to them joining the list of the top coins by market cap, according to data from CoinMarketCap. SHIB is currently the 9th largest cryptocurrency with a market cap of around $38.21 billion, while DOGE is close behind at number ten with a market cap of $35.98 billion
There have also been rumors that Tesla could start to accept Shiba Inu coins as payments. However, those rumors have not been confirmed or denied by Tesla. The company has not commented on the use of these tokens at any time.
Is There Risk Investing In Meme Coins?
One of the major risks with meme coins is that they are not driven by utility. Instead, they are driven by the community behind them, who get others to buy into the coins. In short, their growth is not driven by utility rather it is driven by speculation. However, their communities often get to work to look for utility for these tokens. With time, these coins become widely accepted as a form of payment.
Despite the success of the coins, other coins do come with some risks. For instance, a coin named after the popular Squid Game TV show recently went burst. Its makers managed to hype the coin and in just a few days, its value had skyrocketed by 75000%.
However, shortly after, its funders pulled the rug from under investors and made away with millions. According to data from Coin Market Cap, its value is currently at zero. It was launched on October 20, with a presale value of slightly over a penny. In just over a week, its value had peaked to $40.
Squid Game coin is a great example of a pump-and-dump operation. The founders created the token with the sole goal of defrauding the coin by hyping the price and then cashing in when they felt the price had peaked.
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