Binance’s Meme Coin Picks Plunge: Is the Exchange Driving the Hype?

Meme coin sector’s market cap stands at a significant $114 billion with $20 billion traded in the past day.
Market leaders DOGE and SHIB plunged 9.6% and 15.29% in the past week alone.
Meme coins derive their value from hype and lack any inherent value.

Binance is facing a steep decline in the value of several meme coins listed on its platform. These tokens, which lack fundamental value, remain among the riskiest investments in the crypto space. The price slump highlights the inherent volatility in meme coins and raises questions about Binance’s role in fueling investor hype.

The meme coin market is worth $114 billion, with $20 billion traded in the past 24 hours, but it remains highly volatile and unpredictable.

Major Meme Coins See Significant Declines

Data from CoinMarketCap shows meme coins, including Dogecoin (DOGE) and Shiba Inu (SHIB), recorded sharp declines of 9.6% and 15.3% respectively over the past week. Meanwhile, newer entrants like OFFICIAL TRUMP (TRUMP) and Pudgy Penguins (PENGU) dropped 7.6% and 2% in the past 24 hours alone. Over a week, PENGU plummeted 22%, while dogwifhat (WIF) sank 21%.

Even Pepe (PEPE), previously the third-largest meme coin, tumbled 18% in the last seven days, losing its rank to TRUMP.

Meme Coin Hype and Investor Risks

The introduction of meme coins like TRUMP and MELANIA by Donald Trump’s team sparked controversy, with critics labeling them as “pump-and-dump” schemes. Meme coins often rely on hype to maintain their value, leaving investors vulnerable when the buzz fades.

While Binance provides significant liquidity for these tokens, smaller meme coins often suffer from low trading volumes. This makes it challenging for investors to sell large amounts without driving prices lower.

Adding to the risk, meme coins listed on Binance can become overly dependent on the exchange for their valuation. Any decision by Binance to delist or reduce support for these tokens could severely impact their prices.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.