After its price jumped over 3,800% in the second half of April, the value of the meme coin PEPE surged by an additional 100% in the past 24 hours after Binance confirmed the token’s listing on May 5. The world’s biggest crypto exchange also listed FLOKI, which saw its price soar 57%.
Binance Adds PEPE and FLOKI to the Innovation Zone
Meme coin PEPE jumped 100% after Binance announced it would list the token in its “so-called “innovation zone” – the platform’s trading area where users can buy and sell recently launched and potentially volatile cryptocurrencies. FLOKI, another meme coin, was also listed by Binance on Friday.
Like DOGE, PEPE is also a doge-inspired meme coin that took the crypto community by storm after rising by more than 3,800% over the past two weeks. As its price skyrocketed, PEPE became the third-biggest meme coin in the world, only behind DOGE and SHIB.
PEPE’s latest price surge took the token’s market cap to $1.18 billion. FLOKI soared 57% in the past 24 hours, with its market cap crossing the $1 billion mark.
Binance announced users could start trading these two meme tokens on Friday at 2 pm ET. The supported spot trading pairs include FLOKI/USDT, FLOKI/TUSD, PEPE/USDT, and PEPE/TUSD, the exchange said in the post.
CZ Warns That Meme Coins High Risk
Shortly after the listing announcement, Binance CEO Changpeng “CZ” Zhao warned his Twitter followers to tread lightly when trading meme coins and cryptocurrencies. He said: “Meme coins (and all crypto) are high risk! Remember, no one is forcing you to buy them. DYOR and be responsible for your own actions.”
Buying and selling meme coins is considered risky because their value is often driven by hype, social media trends, and celebrity endorsements rather than underlying fundamentals or real-world use cases. For example, DOGE, the world’s biggest meme coin, jumped more than 20% last month after Twitter replaced its bird logo with an image of a Shiba Inu dog. But while DOGE’s price jump was significant, the cryptocurrency did not maintain its gains for long.
As a result, these cryptocurrencies are known for being extremely volatile, making it challenging to predict when to buy or sell, thereby increasing the likelihood of significant losses. In addition, meme coins may not have the same level of liquidity or stability compared to more established cryptocurrencies like BTC or ETH, making it harder to exit positions or manage risk.
This article originally appeared on The Tokenist
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