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In a dramatic turn of events, the MEMEFI token experienced an extraordinary surge of over 230% following Binance’s announcement of the delisting of its perpetual futures contracts, effective August 11, 2025.
Moreover, this price action defied the conventional expectation of a price decline typically associated with such delisting announcements.
The token’s value nearly tripled within a single session, accompanied by a substantial increase in trading volume, prompting widespread attention and considerable skepticism within the cryptocurrency community.
Binance’s decision to remove MEMEFI perpetual contracts from its futures platform catalyzed MEMEFI’s explosive rally. This announcement triggered forced short covering, compelling traders with short positions to close them rapidly. The resulting aggressive buy orders propelled MEMEFI’s spot price upward by over 190% within a mere 24 hours.
The impact of this forced liquidation was significant, with approximately $4.46 million wiped out in MEMEFI liquidations during the same period.
Moreover, this raised concerns among market participants, with some questioning whether the surge represented a classic “rug pump” orchestrated before an exit by major holders.
The surge in price was accompanied by a corresponding surge in daily trading volumes, with CoinGecko reporting over $209 million worth of MEMEFI tokens traded as the price tripled within a single trading session.
Furthermore, this pattern aligns with “delisting pumps,” a phenomenon often observed when forced short covering rapidly drives spot prices upward. Consequently, the forced closing of derivatives positions can initiate powerful, though temporary, rallies in the spot market.
Interestingly, Binance has also shown similar instances, such as the rally that followed the delisting of ALPACA perpetual contracts.
Despite the remarkable price increase, skepticism remains prevalent among market observers. Many argue that the rally was primarily a consequence of mechanical short covering rather than genuine investor confidence in the underlying asset. Social media platforms have been rife with doubts regarding the sustainability of MEMEFI’s gains.
The intensity of the surge also prompted warnings of potential market manipulation, particularly given the token’s relatively low liquidity. While delisting announcements often induce fear and uncertainty, contrarian traders may interpret such news as an opportunity for increased volatility.
The delisting of futures contracts can often be interpreted as a signal of declining interest in the asset. Ironically, this reduction in activity can amplify market volatility, making the asset more susceptible to rapid price swings.
Historical data indicate that the period of peak activity for $MEMEFI likely occurred in May. During this time, the token’s “holding/market value” ratio reached levels that were, as WaTell observed, “extremely exaggerated and consistently topping various charts.”
“The project’s latest tweet stopped at the end of May, and the K-line during that time indeed showed a strong pattern of pumping and dumping. The project team has probably long since “achieved success and retired” to enjoy life,” WaTell states in an X post.
Nonetheless, short squeezes, like the one MEMEFI experienced, rarely last, especially for thinly traded tokens. When short sellers must close their positions, demand often fades, causing prices to fall as quickly as they rose.
The post MemeFi (MEMEFI) Soars Over 85% Despite Binance’s Delisting appeared first on Cointab.
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