Mubarak, a new meme coin on BNB Smart Chain, recorded a significant selloff despite the listing announcement from Binance, the largest crypto exchange by trading volume.
Mubarak (MUBARAK), a meme coin launched on the BSC-based Four.meme launchpad, faced a sudden price drop right after the listing announcement from Binance.
Mubarak plunged 40% in the past 24 hours and is trading at $0.094 at the time of writing. Its market cap declined from roughly $155 million to $94 million in less than 12 hours. Mubarak’s trading volume, however, tripled to $312 million.
At this point, Mubarak is down by 58% from its all-time high of $0.215 on March 18.
The downward momentum from the meme coin came right after it was listed on Binance along with three more assets — CZ’S Dog (BROCCOLI714), Tutorial (TUT), and Banana For Scale (BANANAS31).
One of the main reasons behind Mubarak’s dive is the selloff from large holders. According to data from Lookonchain, a trader who spent $2,861 to buy 6.14 million MUBARAK tokens on the day of its launch on March 13 has recently deposited it to Binance and made a profit of around $760K.
On the other hand, another trader, who accumulated 10.28 million MUBARAK tokens for $1.29 million, deposited the meme coin to the largest crypto exchange at a loss of nearly $300,000 due to the asset’s price drop.
Is Meme Coin Hype Ending?
Mubarak, the rich Arab-styled meme coin, did not follow the footsteps of the leading assets in the sector like Shiba Inu SHIB $0.000013 24h volatility: 2.3% Market cap: $7.48 B Vol. 24h: $189.20 M , Pepe [NC], Floki Inu FLOKI $0.000060 24h volatility: 2.2% Market cap: $577.15 M Vol. 24h: $74.63 M , and Peanut the Squirrel PNUT $0.16 24h volatility: 10.3% Market cap: $163.05 M Vol. 24h: $211.92 M , to name a few.
SHIB rose from $0.0000015 to $0.000034, with a $13 billion market cap, right after the Binance listing. Pepe surged 40% and FLOKI gained 60% as the Binance announcement surfaced. PNUT rallied 2,500% in less than three days of being listed on the leading crypto exchange.
The fact that some Mubarak holders aimed for short-term profits rather than long-term sustainability doesn’t directly make it a flop. The meme coin still has a lot of upside potential due to the support from Binance and its founder and former CEO Changpeng Zhao.
Other factors like the overall market-wide bearish sentiment and fears of a bear market might also contribute to the Mubarak selloff.
It’s important to note that the meme coin market is still worth over $52 billion, according to CoinMarketCap, and the focus could potentially shift from large to smaller meme coins at any time.
Mubarak’s current price level might look appealing to some investors. The asset would need to break the $0.15 psychological barrier to gain further upward momentum.
next