Venture Capitalist Backs Memecoin

The venture capitalist and incubator of the financial cryptocurrency exchange Binance Labs has made a Memecoin (MEME) token investment.

Binance Labs has invested in the naive ecosystem token of Memeland, a project dedicated to developing and supporting the social economy, the company announced on January 4. The extent of the investment remains undisclosed.

On October 27, 2023, Memeland was introduced as the 39th new launch pool initiative.

Binance announced by the end of that month that users could stake cryptocurrency assets in separate pools in exchange for MEME tokens through a 30-day cultivation strategy.

Participants in this initiative were able to earn MEME token rewards through their involvement in a launchpool for Memeland ventures.

Consequently, MEME emerged as one of the most lucrative me tokens during the autumn of 2023. Prominent cryptocurrency exchanges, such as Binance, OKX, and HTX (previously Huobi), commenced trading the token, causing its value to increase by a factor of 2000.

On January 3, upon hearing the news of the Binance Labs investment, the price of MEME increased by 9% to $0.02702.

Nonetheless, the token has declined substantially since then; after a market collapse in which Bitcoin (BTC) lost 6.2% of its value in the preceding twenty-four hours, the alt-coin sector was also severely impacted, with many coins falling by more than 10%.

The cryptocurrency market has declined since rumors circulated that the U.S. Securities and Exchange Commission (SEC) might not authorize spot Bitcoin ETFs in the first quarter of 2024.

On the contrary, the meme coin experienced a decline of 12% in market capitalization, contributing to a cumulative loss of 5.6% in the last twenty-four hours.