TL;DR

The meme coin soared by triple digits, potentially fueled by CZ’s unexpected involvement.

A savvy investor turned a huge profit (at least on paper) after entering the ecosystem in its early days.

The Impressive Spike

Mubarak (MUBARAK) a meme coin recently launched on the BNB Chain has defied the ongoing market trend by registering a nearly 300% price increase on a daily scale. It currently trades at approximately $0.13, whereas its market capitalization stands at almost $120 million.

MUBARAK Price, Source: CoinGecko The assets surge could be partially attributed to Binances founder, Changpeng Zhao (CZ), who supposedly entered the ecosystem. According to Lookonchain, he spent 1 BNB (around $600) to buy MUBARAK and the same amount to purchase TST (another meme coin created by the BNB Chain team). 

CZs engagement with tokens of that type comes as a surprise, considering one of his statements from February. Back then, Binance listed TST, and the founder assured that he had nothing to do with the decision. He also claimed he has never bought a single meme coin so far.

Zhao is one of the most influential figures in the crypto space, and his interaction with the aforementioned assets could create significant hype and even a FOMO effect among other community members. However, inexperienced traders should be aware that such pumps are often short-lived and might be followed by a substantial correction.

Another factor possibly fueling the rally for MUBARAK is the support from Binance Alpha. The initiative is designed to support the launch and development of innovative projects, including meme coins. It provides liquidity, visibility, and eventual exchange listings. 

What a Trade

Despite the risks of crucial losses, meme coins (especially those in their early days) have the potential to generate impressive profits for savvy investors.

Lookonchain revealed the case of one such trader who spent less than $5,000 to purchase 12.35 million MUBARAK tokens a few days ago. Shortly after, they sold 2.35 million coins for 125 BNB (roughly $74,000) and kept 10 million MUBARAK.

After the latest price pump, the current valuation of the stash has jumped to approximately $1.3 million.