Binance Spot Listing for IP-Backed Meme Token CAT Sparks Surge in Bullish Sentiment

Simon’s Cat (CAT), an IP-backed meme coin, experienced a significant surge in value on Monday, jumping 50% after securing a coveted spot listing on Binance. The token, known for its cat-themed branding, is the first of its kind to receive such a listing, even as other meme coins are facing scrutiny over potential plagiarism.

The price of CAT skyrocketed from $0.000039 to a peak of $0.000067 during early Asian trading hours on Tuesday before pulling back slightly. Meanwhile, trading volume surged dramatically, increasing from $55 million to more than $500 million. Open interest in the token’s futures contracts nearly doubled, reaching over $60 million, signaling heightened expectations for increased volatility with a bullish outlook.

Binance announced that it would distribute CAT airdrops to users who had staked specific amounts of BNB tokens in its Earn products the previous week. Additionally, the exchange confirmed it would list 1000CAT tokens (where each token equals one thousand CAT) at 09:00 UTC on Tuesday.

CAT serves as the official token for Simon’s Cat, an animated series featuring the antics of a hungry house cat. With over 20 million followers across YouTube, Facebook, and Instagram, the series has a substantial fan base that now backs the token.

In comparison to other cat-themed meme tokens such as Popcat, MOG, and MEW, CAT is considered undervalued by many due to its official IP backing and its new spot listing on Binance. As of Tuesday, CAT ranked as the fourth-largest cat-themed meme coin by market capitalization, behind MOG, which boasts a $1.1 billion valuation.

Popular trader @theunipcs, who previously turned a $16,000 investment into $18 million with a BONK trade, has become one of CAT’s strongest advocates. He believes that CAT is positioned to surpass Popcat as the top cat meme coin. According to @theunipcs, CAT has the advantage of mainstream recognition, strong intellectual property backing, and limited competition, making it highly likely to “flippen” Popcat in the near future.

Are IP-Backed Meme Tokens the Future?

CAT’s success highlights the growing trend of IP-backed meme coins, as legal challenges against non-IP coins rise. Intellectual property (IP) includes trademarked or copyrighted characters, memes, and other cultural assets, which offer clearer legal protections. Token projects backed by IP can legally license the use of their characters or concepts, reducing the risk of legal disputes or cease-and-desist orders that can harm non-IP-backed tokens.

Without IP protection, tokens like Chillguy (CHILLGUY) and Pnut (PNUT) are vulnerable to lawsuits from IP holders. In fact, on Monday, Mark Longo, the owner of Peanut the Squirrel, sent a cease-and-desist letter to Binance, accusing it of infringing on his trademark by listing the PNUT token. Longo demanded up to $150,000 per infringement, causing PNUT’s price to drop by 5% in the last 24 hours.

By contrast, CAT benefits from its official licensing with Simon’s Cat, a globally recognized brand that earned $5.8 billion in revenue last year. This strong IP backing provides a level of legal security and stability that non-IP-backed meme tokens cannot offer.

For traders like @theunipcs, CAT’s official IP backing makes it a unique and safer investment. He argues that major exchanges and financial entities will avoid dealing with meme coins that have IP issues, as they could be held legally liable. CAT, however, has official backing and promotion from Simon’s Cat channels, providing it with a significant marketing advantage.

In a meme coin market that is often volatile and legally uncertain, CAT’s IP backing could be the key to its long-term success, offering a rare combination of brand recognition, legal security, and strong community support.