Do you think meme coins are safe for the everyday trader? My simple answer is no it's not. No utility, no stability it's basically like asking if gambling is safe for the everyday trader.
But they're getting popular these days and it's almost for the same reason why Bitcoin became popular when it first started. It's Crypto with no utility, simply hype and hopes that it'll rise. But you see if it should rise what does it mean for anyone that profits from it. It means they're going to take their profit. What is that profit exactly? It's the money of those that invested later.
Meme coins benefit only the early investors, and that is if it should rise. Binance, one of the largest exchange platforms in the world are listing these high volatility, low market cap meme coins and I'm very surprised to see that.
Yes meme coins look like the next big thing after Bitcoin but it's not going to be happy ending for most people and Binance knows that so I'm wondering why they would make such a decision to list these coins.
Why I think it's because they're operating as an exchange platform for the world and should be versatile enough to incorporate the things that most people want whether it's good or bad for them so I really don't blame Binance for that. The responsibility of meme coin trading is entirely in the hands of those who want to trade.
Recently, we saw Binance list Solana-based memecoins like The AI Prophecy (ACT) and Peanut the Squirrel (PNUT), which then surged in value almost immediately after they did that.
These coins have been called potential pump and dump schemes by critics, like Leonidas from Ord.io. This man even started a petition asking Binance to be more transparent about listing fees. The reason why he did that is because he knows insiders can potentially manipulate these coins' prices, leaving most of the smaller investors at a disadvantage. A very risky game to enter but hey if you have the heart for it and enough skill to decide on the right meme coin investment, you can make life changing money as profits.
I think another reason why Binance is leaning into memecoins besides the fact that it's popular and most people are doing it so it would help them if they add it to the platform, they want to possibly keep users from drifting to decentralized exchanges. Regardless of the reason, I think it's right for Binance to do more to protect smaller investors here.