In summary
- Moo Deng (MOODENG) rose more than 80% following the announcement of its listing on Coinbase, reaching $0.57.
- The Solana-based token is just 16% below its all-time high of $0.68 set in November.
- The “Coinbase effect” and the rise of memecoins have boosted their demand, although low liquidity remains a key risk.
Solana-based token Moo Deng (MOODENG) soared more than 80% an hour after American Cryptocurrency exchange Coinbase announced its plans to list the token.
Data from CoinGecko shows that the memecoin is now priced around $0.57. In a 24-hour period, MOODENG is up almost 54%.
The token, which gained momentum in September, is still below the all-time high price of $0.68 it reached in November. And it only needs 16% to exceed that level.
The asset runs on the Solana network, a Blockchain that this year has become increasingly attractive to those who want to mint new coins.
Coinbase made the listing announcement on Monday, adding Moo Deng to its roadmap. Meme coins listed on the roadmap in recent weeks are usually available for same-day trading.
When the San Francisco-based firm lists tokens, they tend to increase in price as traders consider them more legitimate, in addition to being much more accessible to conventional traders. This is known as the “Coinbase effect.”
As the price of Bitcoin has risen, reaching new all-time highs this year, so have meme coins and tokens. Memecoins are cryptocurrencies based on internet jokes, celebrities, real-world events, and beyond. They can make lucky traders a lot of money, but they can also lead to huge losses due to their volatility.
MOODENG in particular caught attention after a trader turned an $800 investment into $7.5 million.
But it can be difficult to reap the rewards of such assets: As Decrypt has previously reported, liquidity is an issue in the crypto space. An investor who made millions on paper could not take his profits immediately, because such a move could cause a market crash by draining all liquidity, making any large gains worthless.
Edited by Andrew Hayward
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