The Musk Trade" Resurfaces: Animal MEMEs, Tweets, and Skyrocketing Prices

Written by: Wu Tianyi, DeThings

 

Recently, a Solana meme token named PNUT has surged in popularity, listing on Binance on Monday and its market capitalization skyrocketing to $1.5 billion. According to CoinGecko, the token has surged by 1,524% in the past seven days, with its current price at $1.65.

 

PNUT is one of the few meme coins that has risen in the past 24 hours. The leading dogecoin (DOGE) dropped 6%, while its biggest competitor, Shiba Inu (SHIB), plummeted 11%.

 

Other memes affected by the ongoing market downturn include POPCAT (-9%), BRETT (-11%), NEIRO (-12%), and MEW (-12%).

 

"Musk Trade" Resurfaces

 

This meme coin is similar to DOGE, based on a real-world pet. Earlier this month, New York authorities confiscated the pet for rabies concerns and euthanized it. Subsequently, Donald Trump and local candidates accused the New York Democrats of "overreach," and the squirrel became a symbol for the Republican "battle" on social media. Additionally, Elon Musk repeatedly posted about the pet squirrel on Twitter, stating, "President Donald Trump will save the squirrel," and "A squirrel and a meme coin will save America." This topic soon became entangled in political discourse. Similar to how DOGE surged due to Musk's tweets, a similar "Musk trade" has now reappeared with PNUT. Another catalyst is Binance's recent listing strategy, which ignored larger meme coins and instead opted to list two smaller market-cap tokens, PNUT and ACT. Moreover, Binance co-founder He Yi stated that the listing fees for these two tokens were waived. After listing on Binance, the prices of PNUT and ACT skyrocketed by over 1000%, leading to significant profits for early investors. Other Solana-based meme tokens also saw similar surges after being listed on Binance. CoinGecko data shows that AI Prophecy (ACT) saw its market cap rise from $20 million to over $650 million after being listed on Binance on Monday, with its price jumping from $0.02 to $0.6. According to on-chain analyst Ai_9684xtpa, Binance has launched 15 meme coin projects this year, including futures and spot markets.

 

AI Meme Popularity Unabated

 

Another Solana-based memecoin, named "Act 1: AI Prophecy" (ACT), surged by over 1,720% after being listed on Binance. The token was initially launched on October 19, with a market cap around $20 million over the weekend. After listing, trading volumes skyrocketed, with decentralized exchange Raydium's volume reaching $293 million and Binance's volume at $60 million. As of the time of writing, its market cap has increased to $422 million. According to its official website, ACT represents the AI community token and claims to focus on "promoting AI research, education, and collaboration." The website for the meme coin states that it was co-founded by an anonymous Twitter user, Amplifiedamp (also known as Amp), who decided to sell all his tokens and leave the community shortly after feeling "betrayed." With the surge of PNUT and ACT, it's evident that Binance is beginning to favor lower market-cap projects driven by community support, rather than those with stronger liquidity or larger market caps. However, some have raised concerns. Notably, Ordinals developer Leonidas warned that Binance has become an "engine for pumping stock prices," intentionally harming retail investors and creating an unhealthy meme coin market. Some cryptocurrency participants claim that whales and big investors often buy and sell these tokens after luring in small investors for several hours to a week.

 

This article is sourced from Foresight News:

https://foresightnews.pro/article/detail/71472

Best regards,

AIC Team

November 18, 2024