Simon’s Cat Token (CAT) Rises 50% as Binance Lists It Amid IP-Backed Memecoin Boom
Simon’s Cat (CAT) token surged 50% on Monday after becoming the first cat-themed token to secure a coveted listing on Binance, a development that has sparked interest in IP-backed memecoins.
Data shows that CAT zoomed from $0.000039 to a record peak of $0.000067 in early Asian hours on Tuesday, with trading volumes rising tenfold from $55 million to over $500 million.
Open interest in the token’s future products nearly doubled to over $60 million, indicating a bump in expectations of further volatility with a bullish bias.
Binance announced on Monday that it would offer airdrops of CAT to users of its Earn products who staked specific amounts of BNB tokens last week. The exchange will list 1000CAT, where a single token holds a thousand CAT, at 09:00 UTC later on Tuesday.
CAT is the official token of Simon’s Cat, an animated series about a hungry house cat and its adventures, with over 20 million followers across YouTube, Facebook, and Instagram.
Comparisons with other cat-themed memecoins like Popcat, MOG, and MEW often place CAT at a perceived undervaluation due to its spot listings and IP backing, among other reasons. Data shows that it is the fourth-largest by market capitalization in that category, led by MOG at $1.1 billion as of Tuesday.
Well-followed trader @theunipcs, who famously turned $16,000 to $18 million on a BONK trade, is among the most vocal supporters of CAT and expects it to become the largest cat-themed meme token in the coming months.
“A $CAT flippening of $POPCAT to become the top cat memecoin is highly likely,” the trader said in a Monday post. “(It has) the best mainstream recognition for a cat memecoin brand, the best unit bias among major cat memecoins, strong and official IP, 99% of CT is sidelined, so a hated rally is likely.”
Are IP Memecoins the Future?
CAT’s spot listing comes as non-IP memecoins increasingly face legal heat.
IP, or intellectual property, can include characters from memes, video games, or any cultural phenomenon that have officially been trademarked or copyrighted before their tokens were offered to the public.
Tokens backed by IP have a clearer legal standing regarding usage rights. The creators or owners of the IP can legally license the use of their characters or concepts, reducing the risk of legal challenges like cease and desist orders or lawsuits for unauthorized use of copyrighted material, which can abruptly devalue non-IP-backed tokens.
Tokens are starting to face the risk of legal action from IP holders if they do not own or secure rights to the IP they emulate or represent. Non-IP tokens like chillguy (CHILLGUY) and pnut (PNUT) face challenges despite being popular and widely traded.
On Monday, Mark Longo, the owner of Peanut the Squirrel which inspired the PNUT token, issued a cease-and-desist letter to Binance, accusing it of trademark infringement for listing and offering the PNUT memecoin.
Longo claimed Binance used his “Peanut the Squirrel” trademark and mascot likeness without permission, noting he has been using the PNUT brand for educational and animal welfare initiatives since 2017.
The cease-and-desist warning of potential legal action and sought penalties of up to $150,000 per infringement. PNUT’s prices are down 5% in the past 24 hours, in line with a broader market lull.
Conclusion
CAT’s listing on Binance has sparked interest in IP-backed memecoins, which have a clearer legal standing regarding usage rights. The token’s official IP backing and spot listing on a major exchange have driven its investment thesis for traders like @theunipcs.
FAQs
Q: What is the Simon’s Cat token?
A: The Simon’s Cat token (CAT) is the official token of Simon’s Cat, an animated series about a hungry house cat and its adventures, with over 20 million followers across YouTube, Facebook, and Instagram.
Q: What is the significance of Binance listing CAT?
A: The listing of CAT on Binance is significant as it is the first cat-themed token to secure a listing on the exchange, indicating a growing interest in IP-backed memecoins.
Q: What is the advantage of IP-backed memecoins?
A: IP-backed memecoins have a clearer legal standing regarding usage rights, reducing the risk of legal challenges like cease and desist orders or lawsuits for unauthorized use of copyrighted material.
Q: What is the current market capitalization of CAT?
A: As of Tuesday, CAT is the fourth-largest by market capitalization in the cat-themed memecoin category, led by MOG at $1.1 billion.
Q: Who is the well-followed trader who supports CAT?
A: @theunipcs, a well-followed trader, is among the most vocal supporters of CAT and expects it to become the largest cat-themed meme token in the coming months.
