- Social media influence triggers rapid memecoin price surge, driving massive trading volume.
- Tokens like Mubarak surged 200% after gaining attention from key crypto influencers.
- Memecoins thrive on platforms like Pump.fun, where low fees boost trading activity.
Changpeng Zhao (CZ), the founder of Binance, holds a strong influence within the cryptocurrency market. Social media activities from CZ have been known to drive explosive price jumps in different tokens, widely referred to as the “CZ effect” phenomenon. Social media engagement by CZ through comments or liking posts regularly sets off buying speculation among cryptocurrency investors. This is especially in memecoins that highly rely on social sentiments and buzz.
CZ’s influence in the market remains distinct, as a number of coins saw their values skyrocket after his involvement. For instance, the announcement of CZ triggered the massive rise of digital currencies such as TST and Cheems. The latest hypothetical memecoin that could benefit from this phenomenon is a PATLU token, inspired by the popular Indian animated character from the sitcom “Motu Patlu.” If CZ were to engage with the Patlu meme, it could make PATLU a viral memecoin, creating a surge in trading volume, similar to what has been witnessed with other tokens he has influenced.
The Surge of Memecoins
CZ’s impact on the memecoin market is not just theoretical. The memecoins backed by CZ, such as Mubarak, show his ability to create quick price surges following his support. Mubarak’s value exploded by 200% when Binance Alpha added it to their trading platform, while CZ contributed to the price growth with a direct purchase. This event showcases how a simple endorsement or mention can have outsized effects on a token’s price.
Mubarak’s rapid growth matches that of other memecoins like BUBB, which skyrocketed in value due to social media speculation and hype. The listing process managed by Binance’s community gives additional power to influencers such as CZ, who boost the success of launched tokens. A memecoin’s explosive rise to prominence becomes possible within a short time when it attracts influential figures on social media.
Related: CZ Calls Binance Alpha 2.0 A “Brilliant Move” for Bridging CEX and DEX Trading
PumpSwap: The New Decentralized Exchange for Memecoins
The memecoin craze is also shaping the decentralized exchange (DEX) landscape. Pump.fun, a platform known for fostering the creation and trading of memecoins, has launched its own DEX, PumpSwap. This move shifts the focus away from traditional platforms like Raydium, positioning PumpSwap as the primary venue for trading Solana-based memecoins.
PumpSwap targets operational efficiency by removing traditional issues that hinder migrations and liquidity bonding. With this update, memecoins will experience enhanced liquidity access and accelerated transaction speeds, which are essential to the quick-paced memecoin trading market. The new DEX system shows potential to accelerate memecoin expansion by enabling smaller tokens with better possibilities to become viral through social media and influencer promotion.
