The world’s leading cryptocurrency exchange, Binance, and Crypto.com have recently brought attention to the world of meme coins by launching perpetual contracts for pepecoin (PEPE) and adding it, along with Floki Inu (FLOKI), to Binance’s Innovation Zone. Notably, the listing fees have been waived for these tokens, showcasing the exchange’s commitment to their growth.
As a meme coin inspired by the cartoon character “Pepe the Frog,” it is crucial for traders to understand that PEPE has zero utility or value support mechanisms, and its creation is attributed to an anonymous team. On the other side of the spectrum, FLOKI has expanded beyond its meme coin origins, developing an ecosystem that now includes non-fungible token (NFT)-based games, NFT collections, and a crypto debit card, with FLOKI serving as the utility token for this ecosystem.
The Innovation Zone, where these two tokens will be traded, is an area dedicated to fostering new and innovative projects. However, the tokens listed here often experience heightened volatility and pose greater risks than other more established assets.
Moreover, Binance has also launched the PEPE perpetual contract on its derivatives exchange. A perpetual contract, a derivative product lacking an expiry or maturity date, features regular funding payments between counterparties to maintain alignment with the underlying price. Furthermore, the exchange encourages trading activity by offering zero maker fees on FLOKI and PEPE spot trading pairs.
On May 6, 2023, withdrawals for these tokens will be enabled, and users can already deposit FLOKI and PEPE tokens in anticipation of trading. Additionally, the borrowable assets in the Isolated Margin section will include FLOKI and PEPE, starting May 5. Crypto enthusiasts should note that Binance isn’t the only platform offering PEPE perpetual contracts, as Crypto.com’s derivative exchange has also introduced them.
Overall, the addition of PEPE and FLOKI to Binance and Crypto.com raises the profile of meme coins within the crypto market. Traders can now engage more directly with these tokens, potentially reaping the rewards that stem from their volatility. However, users must be aware of the risks associated with coins like PEPE, which lack utility and a clear value proposition, and carefully consider the pros and cons before partaking in these new trading opportunities.