Binance's Listing of ACT and PNUT Fuels Meme Coin Frenzy: Unmasking the Truth Behind the Surge and Future Outlook

Binance's Listing of ACT and PNUT Fuels Meme Coin Frenzy: Unmasking the Truth Behind the Surge and Future OutlookBinance's recent listing of ACT (The AI Prophecy) and PNUT, two meme coins, sent shockwaves through the cryptocurrency market. ACT saw a 16x price surge within half an hour, its market cap jumping from $20 million to $350 million; PNUT tripled in value within an hour, reaching a $400 million market cap

Binance's Listing of ACT and PNUT Fuels Meme Coin Frenzy: Unmasking the Truth Behind the Surge and Future Outlook

Binance's recent listing of ACT (The AI Prophecy) and PNUT, two meme coins, sent shockwaves through the cryptocurrency market. ACT saw a 16x price surge within half an hour, its market cap jumping from $20 million to $350 million; PNUT tripled in value within an hour, reaching a $400 million market cap. This phenomenon has sparked intense debate: is this a market miracle, or a new wave of "harvesting"? This article delves into the reasons behind the surge of ACT and PNUT, exploring the potential risks and future trends.

I. ACT: A Collision of AI Dreams and Decentralized Ideals

ACT, short for "The AI Prophecy," is a decentralized AI experiment project running on the Solana blockchain. Its goal is to "make AI knowledge accessible to everyone," aiming to build a decentralized AI knowledge-sharing platform. Unlike most entertainment-oriented meme coins, ACT claims to be more than just a cryptocurrency; it positions itself as a "knowledge evangelist of the new era." This ambitious vision attracted investors chasing ideals.

However, ideals and reality often diverge significantly. ACT's initial launch wasn't smooth; it experienced internal conflict within the founding team and significant price volatility. AmplifiedAmp (Amp), a former member of the GOAT token team and initial holder of 6% of ACT's supply, frequently sold large quantities of ACT after launch, causing the price to plummet and infuriating the community. Accused of "rug pulling," Amp eventually bowed to public pressure, announcing his withdrawal from the project and burning 1,745,004 ACT tokens (whose value soared from an initial $41,000 to $3.87 million). Ironically, Amp claimed he never authorized the ACT project's launch and didn't want it listed on Binance.

Surprisingly, Amp's departure didn't lead to community collapse. Instead, it spurred decentralized governance. Community members spontaneously formed an autonomous organization dedicated to AI knowledge dissemination and community education, attempting to transform ACT into a genuinely decentralized "grassroots AI outreach program." Binance's listing announcement mentioned a zero BNB listing fee for ACT, a stark contrast to previously reported exorbitant listing fees, adding a layer of mystery to ACT's surge.

After Binance listed ACT, its price increased tenfold in just 10 minutes, primarily due to Binance's massive traffic as a top global exchange and the momentum of the meme coin market. However, this sharp rise also exposed potential risks. ACT's long-term success hinges on its ability to build a valuable AI knowledge-sharing community and whether its governance model and community consensus can support long-term price stability both remain uncertain.

II. PNUT: The Tragedy of a Viral Squirrel and Meme Coin's Successful Leveraging

PNUT's rise is inextricably linked to a widely publicized social event: the tragic fate of "Peanut," a viral squirrel influencer. Peanut's owner, Mark Longo, amassed a large following sharing Peanut's videos on social media. However, due to an "illegal keeping" dispute, Peanut was captured and euthanized, sparking widespread anger and sympathy.

This event rapidly escalated, becoming a focal point for criticism of government agencies and even the Democratic Party's policies, particularly amidst a heated US election. The Peanut incident was heavily publicized as a "symbol of protest." PNUT capitalized on this public sentiment, quickly gaining traction and leveraging social media to fuel market hype.

Interestingly, PNUT's price surged further after the US election results were announced. After Binance's listing, its market cap reached nearly $400 million. PNUT's success exemplifies the "quick money from hot topics" characteristic of meme coins. However, the underlying risk of extreme price volatility in its short-term surge demands caution from investors.

III. On-Chain Data: Whale Manipulation and Harvesting Emotional Premiums

The short-term surge of ACT and PNUT wasn't solely driven by market sentiment; it involved whale manipulation. On-chain data reveals that large investors accumulated at low prices and quickly sold for profit after the Binance listing. For instance, a trader bought a large amount of ACT for $457,000 and sold at a much higher price after the Binance listing, profiting over $2 million. Similar whale activity is evident in PNUT's on-chain data.

This manipulation highlights the speculative nature of the meme coin market and the harsh reality of professional investors harvesting "emotional premiums." Ordinary investors often struggle to compete with such market fluctuations, facing extremely high risks.

IV. Binance's Listing Strategy Sparks Controversy: A Feast for the Lambs and BNB Holders' Dissatisfaction

Binance's listing of ACT and PNUT sparked heated discussions, but also controversy. While ACT and PNUT community members rejoiced, Binance users, particularly BNB holders, expressed strong dissatisfaction. Many users criticized Binance in comments below the listing announcement for frequently listing high-risk meme coins, questioning potential "insider trading" and market manipulation to harvest profits from unsuspecting investors.

BNB holders felt particularly let down, as Binance's promised Megadrop plan remained unfulfilled while high-risk meme coins continued to be listed, feeling abandoned by the platform. This negative sentiment poses a challenge to Binance's long-term brand image.

V. Solutions: Transforming Listing Strategies and Exchange Self-Redemption

Crypto exchange listing strategies are a delicate balancing act. Frequent listings boost trading volume, but the risks ultimately fall on investors. Leading exchanges like Binance need to balance profit and trust, improving their listing strategies.

A proposed "Main Platform + Community Platform" dual-track system:

• Main Platform: Strict screening of listed projects, with rigorous audits of technology, applications, and revenue models, gradually delisting non-compliant projects.

• Community Platform: Emulating decentralized exchanges (DEXs) using a registration system, allowing projects to list freely, with the market determining their survival.

This dual-track system reduces the exchange's audit burden, caters to meme coin demand, and effectively mitigates "insider trading" risks.

Additionally, Binance should:

• Fully transparently disclose on-chain data: Publicly release information on project fund flows, team holdings, etc., enhancing transparency and investor confidence.

• Strengthen investor education: Guide investors to understand the risk characteristics of the meme coin market, promoting rational investment and preventing them from becoming "bagholders."

VI. Conclusion: The Tug-of-War Between Market Sentiment and Listing Strategies

The surge of ACT and PNUT reignited the meme coin market, but the underlying risks are undeniable. Binance's frequent listing of high-risk projects might erode user trust. Binance needs to find a balance between transparency and regulation to avoid "harvesting" controversies and promote healthy market development. Investors should remain rational, making informed judgments to effectively mitigate risks in the meme coin market.