Original | Odaily Planet Daily（@OdailyChina）
Author | Golem（@web3_golem）
On November 11, Binance announced the launch of MEME coins ACT and PNUT spot trading. Subsequently, PNUT surged 250% in a single day, and ACT surged 2000% intraday, with its market capitalization rising from $20 million to over $300 million within a few hours. Following the launch of the "uppercase and lowercase MEME coins" Neiro, Binance's move once again sparked intense reactions in the market and community, with some voices questioning the existence of a conspiracy group behind it, while others actively supported Binance's support for the community and attempted to find and ambush the next MEME coin that could be listed on Binance.
So, why has Binance, which has previously kept its distance from MEME coins, been frequently supporting MEME coins recently - is it in line with the bull market rhythm or catering to the popular track, is it lowering the listing standards or a "victory for the community"? Odaily Planet Daily will analyze the reasons behind Binance's listing of MEME coins and whether MEME coins can achieve a win-win situation for Binance and the community in this article.
Why has Binance been listing MEME coins recently
The first half of 2024 was a year of disenchantment with VCs and altcoins in the crypto circle, as retail investors gradually realized that high-valued, low-initial-circulation tokens had almost no profit space left for secondary traders after TGE, and the market pressure brought by the unlocking of VC tokens also gradually eroded the credibility of tokens backed by VCs in the market.
Against this backdrop, Binance, as the "crypto market liquidity hub", has also been pushed into the public opinion spotlight, with users having listed the performance of VC-backed tokens listed on Binance in the first half of 2024, with many tokens dropping more than 50% after listing. Therefore, the voices in the market about Binance colluding with VCs and project parties to "harvest the community's leeks", and crazily sucking the blood of users, have also become increasingly loud, which has also caused Binance's image and credibility in the eyes of users to be damaged.
Community summary of the performance of new tokens listed on Binance, data as of August
Listing MEME coins can be considered a panacea for Binance.
The clues to supporting MEME coins can be traced back to the report on "high-valued, low-initial-liquidity tokens" released by the Binance Research Institute in May, which pointed out the trend of high token valuation but low circulating supply for VC-backed tokens launched in 2024 and the pressure on the market from token unlocking. In addition, the report also pointed out the superiority of MEME coins, most of which are fully circulating and have an MC/FDV ratio of 1, so that holders will not be diluted in value due to token issuance, and even if these tokens lack utility, these characteristics make retail investors very interested in MEME coins.
Although this report did not cause much reaction in the market at the time, it now seems to indirectly prove that Binance had already paid attention to MEME coins and acknowledged their appeal to users. Later, Binance co-founder He Yi published articles on the Binance Square for two consecutive days in June, first clarifying to the community that Binance does not have pricing power, and then stating that the ICO of 2017, the IEO of 2021, the nesting strategy, and even the "shearing" strategy of 2023 may no longer be suitable for the current market, and hinted that a healthier market may be one with less VC investment and fewer project parties.
And the story that followed is known to everyone - Binance simultaneously listed the uppercase and lowercase MEME coins Neiro, officially embarking on the MEME coin journey. (Related reading:《Neiro and NEIRO listed on Binance, a turning point for the MEME coin track?》)
Although the listing of Neiro by Binance, including the subsequent series of MEME coins, is somewhat controversial, compared to the previous listing of Altcoins facing criticism from all users, MEME coins have helped Binance regain its image and credibility in the community. And this time, through the listing of the token ACT, Binance's credibility among users has risen again, with even positive comments such as "miracles only happen on-chain + Binance".
After months of experience, Binance's community image has "self-rescued" and gained positive feedback.
MEME coins are more accessible
In addition to the restoration of confidence, the greater accessibility and wealth effect of MEME coins in the bull market may also be an important reason for Binance to list MEME coins, compared to listing Altcoins supported by VCs. The Binance Research Institute released a report on November 4 stating that in addition to being more fair, MEME coins also provide more easily acceptable narratives for retail investors, who can understand MEME coins faster than the more technically complex L2 or DeFi.
Especially for breaking through the circle, MEME coins can build a community and drive user speculation faster than Altcoins. And compared to on-chain purchases, exchanges have a more convenient and direct purchasing experience, which may truly bring incremental users and capital to the exchange during the bull market.
Is there a catch behind the listing of MEME coins
After Binance regained credibility through strong support for MEME coins, there are also voices that MEME coins are more likely to form insider trading and "conspiracy groups" than Altcoins. Before Binance announced the listing of ACT and PNUT, there were suspected users on social media and on-chain who knew the inside information.
A day before Binance announced the listing of PNUT, a user posted on the X platform saying "Binance will list PNUT tomorrow, start buying now", and the account was later deleted.
The community's questioning and "conspiracy theories" about ACT are even greater, with a user digging out multiple addresses that bought $4,000 to $10,000 of ACT 5 hours before the announcement. At the same time, there are also conspiracy theories about the listing of ACT on Binance itself - some speculate that Binance was hoarding ACT, and others speculate that there is another conspiracy group behind ACT or that the KOL 0xWizard in the Chinese-speaking area had prior knowledge of the inside information.
Source: Internet
In the face of the questioning, Binance co-founder He Yi posted on the X platform stating that the listing fees for ACT and PNUT were both 0. 0xWizard also clarified that he was not aware that Binance would list ACT on that day, and that this was a victory for the community.
As the "largest crypto exchange in the universe", the standards and regulations for listing coins on Binance have always been a persistent topic. Binance and He Yi have made many disclosures in this regard, and when the "lowercase Meme coin" Neiro caused controversy when it was listed on Binance, He Yiwrote an article stating thatthe listing process on Binance consists of four steps: business, research team, committee, and compliance review, and the listing standard is that the project itself has user traffic, longevity, low market cap, and a solid business logic; afterwards He Yi also explained the Binance listing issue many times, including that if a project does not pass the screening process, it cannot be listed on Binance no matter how much money or percentage of the coin is offered; the author is not the final decision-maker in the listing process, and listing on Binance futures does not guarantee listing on the spot market, etc.
However, whether Binance has any ulterior motives behind the listing of Meme coins, no matter how many times they clarify, it is still an inexplicable thing. Because in the investment field, there are many uncertain factors and luck elements, when people are eager to find rationality for something or to find excuses for their investment failures, they may reverse cause and effect, and infinitely amplify coincidences.
But in this market that always has opportunities. For speculators, discussing whether Binance's listing has any conspiracy may not be the most important thing, the important thing is to lay the groundwork for those Meme coins with a market cap of around $20 million, an active community, an even distribution of chips, and a good narrative, just in case Binance takes a liking to them? (Related reading: Which Meme coin is likely to be listed on Binance next?)
Can Meme coins make Binance and the community a win-win?
On November 11, on-chain analyst @ai_ 9684 xtpa released an overview of the market performance of Meme coins that Binance plans to list in 2024. In contrast to the price performance of VC coins that Binance plans to list in 2024, the Meme coins listed on Binance have a clear "listing effect", with the lowercase Neiro surging over 7000%, and ACT surging over 2000% on the day of listing on November 11.
Such impressive returns are why users are so eager for Binance to list Meme coins these days. From the results, Binance's listing of Meme coins has already achieved a win-win situation at the current stage. For Binance, it has successfully regained credibility in the eyes of users and further enhanced the platform's influence and voice, the involvement of a major exchange can even reshuffle the order of the top players; for users, there is still a large profit margin for primary and secondary users to buy in after the listing.
But how long can this situation last? "The new Meme coin godfather" Murad said that the Meme coin asset class is rapidly being divided into two subcategories: PvP and PvE, but Meme coins with PvE characteristics are rare in the market, most Meme coins are just PVP products. Some users may think that when a Meme coin is listed on Binance, it has escaped the PVP, but is Binance just a larger PVP pool than the chain? Binance has only listed a few dozen Meme coins so far, and once Meme coins become as saturated on Binance as VC coins, it may also lead to a shrinking of the upside space.
In this cycle, whether it's primary market new listings or farming airdrops, the altcoins supported by VCs have lost their wealth effect, so few people are talking about DeFi, GameFi, reStaking, and blockchain developers are embracing financial nihilism in batches, turning to the Meme world instead. Is this crypto world really a win-win and the consensus of the masses?
On September 17, He Yi published a long article on the Binance Square discussing the industry cycle and wrote: "We are the pigs of the wind, catching the pulse of the times, and it is by standing with the users that we have come to where Binance is today." The facts are indeed so, perhaps not everything Binance does is right, but it is definitely what the market and the community need.
Perhaps in the future when the Meme coin market is saturated, blockchain will experience a "technical idealism renaissance" and call for attention to value coins. And at that time, what choices will the market and Binance make?
