The largest cryptocurrency broker in the world, Binanceannounced the listing of a new memecoin on its platform, resulting in optimism among investors who, driven by desperation, ended up buying the wrong currency.
Binance announced the MEMECOIN token (MEME) on Friday evening (28), in the following hours, the Memecoin token (MEM) rose by almost 300%, while another 80 tokens with similar names saw jumps of 10 to 30% – indicating that investors did not know which was the real memecoin.
New #Binance Launch Pool: $MEME@memecoin is the native ecosystem token of @Memeland9GAG’s independent Web3 venture studio.
Learn more 👇https://t.co/FwAX23jXhL
— Binance (@binance) October 27, 2023
According to the project website (the real one) announced by Binance, MEME is a sign of 9GAG, one of the largest meme sites in the world. On the other hand, according to CoinMarketCap, there are another 88 tokens with similar names.
It is important to note that MEMECOIN (MEME) is not yet available for purchase and is only available for staking on the Binance LaunchPoll platform.
However, the other tokens are available for purchase from various decentralized brokers, which explains the increase in the number of coins unrelated to Binance’s announcement.
Binance announces MEMECOIN (MEME).
The project website is clear about MEMECOIN’s objective and presents itself as an ERC-20 digital token “without use or intrinsic value”in addition to not offering “no expectation of financial return or profit.”
The project also says that it does not want to be a medium of exchange or representation of money, but that is to say “Whoever controls the memes controls the universe.”
Binance stated that it will list the token on 11/03 and open trading with the MEME/BTC, MEME/USDT and MEME/BNB pairs
Per token is not soldit can be earned by users who bet on Binance with Binance Coin (BNB), TrueUSD (TUSD) and First Digital USD (FDUSD).
“Users can stake their BNB, TUSD and FDUSD in separate pools to farm MEME tokens over the course of 30 days, with farming starting on 10/28/2023 at 00:00 (UTC).” – says Binance.
Under Launchpool rules, users have the flexibility to withdraw funds from the platform at any time and can join other available pools.
At the end of each farming period, tokens are staked in each pool and any rewards are automatically distributed to users’ accounts.
The token has a total supply of 69,000,000,000 MEMEs, and 2% (1,380,000,000) will be distributed to users betting on Binance.
Wrong MEMCOIN rises almost 30%
Returning to the unfortunate people who bought the wrong coin, this is not the first time something like this has happened, as scammers take advantage of listings on brokers and create coins with similar names to confuse investors.
However, the case of Memecoin has a detail that draws attention, as another advertisement on Binance directly mentions the wrong token.
The article in question was published on Binance Square, an internal social network of Binance that allows anyone to post articles on the Binance website.
Such text could be the main cause of user error as it specifically mentions the wrong Memecoin, the MEM.
Although the text is on Binance’s website, it was not published by the broker, but by a user registered on the company’s social network.
Driven by FOMO (fear of missing an opportunity), investors may have seen the article and subsequently purchased the said coin, resulting in a 280% increase in a few hours and a volume of 38 thousand dollars.
Last but not least, investors should be careful when buying memecoins because, as the project itself made clear, they have no use or value.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
