The world’s largest crypto exchange by volume, Binance, made an unexpected decision today. The crypto exchange made headlines again by adding two more memecoins to its platform – Pepe (PEPE) and Floki Inu (FLOKI). This decision further fueled the ongoing craze for memecoins and gave a significant spark to the alleged memecoin season.
Binance announced the listing of PEPE and FLOKI in its innovation zone. This means that before a trader or an investor gets the right to enter a market pair including PEPE or FLOKI, they must answer two questions correctly. These questions are related to the potential losses and the responsibility one is faced with when investing in memecoins.
Following the listing, FLOKI has skyrocketed by 50% and PEPE has seen a double in price. This rally pushed the frog-inspired token to reach a market capitalization over the $1 billion mark. Despite the impressive gains, both coins still trade at far less than a cent at the time of writing. We must note that PEPE set a new all-time high today, reaching a trading value of $0.00000426 just some hours ago.
Binance Warned Its Users Of Potential Risks Related To PEPE
Binance issued a warning for its users who are awaiting the listing of PEPE and FLOKI. The exchange stated that PEPE currently has no token utility or value support mechanism. Moreover, there are indications that certain insiders or team members bought 7% of the total token supply minutes after the Token Generation Event (TGE). This makes the token somewhat centralized, however, though, it doesn’t make it less credible than Shiba Inu or most other memecoins.
Even CZ Binance, the CEO of Binance and a highly influential figure in the crypto industry, warned investors about the possible risks related to memecoins. Through a tweet, CZ stated that the crypto market is high risk and cited memecoins in particular. He made sure to inform the users that “no one is forcing” them to buy the tokens. Therefore, he believes that every single investor must be responsible for their actions.
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. https://t.co/4GBHB3Llkx
— CZ 🔶 Binance (@cz_binance) May 5, 2023
Due to the high number of PEPE deposits on Binance, the listing was postponed. The exchange stated that it is experiencing technical difficulties and the deposits must be halted. However, everything was fixed and the tokens are now listed on Binance.