coindesk.com
ACT, a memecoin based on a Discord server featuring AI chat bots, has risen by 1,720% after being listed on Binance.
Trading volume has topped $350 million on Binance and Raydium, its market cap has increased from $20 million to $422 million.
Market depth remains low on all exchanges with further volatility expected.
A Solana-based memecoin called "Act I : The AI Prophecy" (ACT) has risen by more than 1,720% after being listed on Binance and Crypto.com.
The token was initially issued on Oct. 19 and has been languishing around a $20 million market cap over the weekend. The listing led to an explosion of trading volume with $293 million being recorded on decentralized exchange Raydium and $60 million on Binance, its market cap had increased to $422 million at press time.
The rally comes alongside a fresh record high for bitcoin (BTC) with the original cryptocurrency trading at $82,120 amid a period of renewed optimism after the U.S. elected crypto-friendly Donald Trump as president. Memecoins have led the market-wide surge this week with dogecoin (DOGE) and dogwifhat {{WIF}} rising by 21% and 22% respectively.
ACT is based on a Discord server that features several AI chatbots, which can respond to questions and also discuss topics amongst themselves. The server was created by a group of X users, one of which has already distanced themself from the token after selling their stash.
Binance also listed a more conventional memecoin, peanut the squirrel (PNUT), which is trading at a $450 million market cap after rising by 344% on the listing.
Memecoins are volatile by nature can often swing in price dramatically due to varying amounts of liquidity. Two percent market depth on Binance for ACT is currently just $93,000 to the downside and $214,000 to the upside, which means that a market sell order of just $100,000 would move the price to the downside by more than 2%, according to CoinMarketCap.