- Binance listed a new token on the exchange trading by the name of Ordinals (ORDI), resulting in confusion in the market.
- Due to a lack of clear description from Binance, many misunderstood the BRC-20 memecoin to be a native Ordinals protocol token.
- The meme coin benefitted from the confusion, rising by 40% in a day, bringing its four-day rally to 100%.
Bitcoin-based DeFi protocol Ordinals made headlines in the past couple of months and has since become a rather familiar name among traders and investors. This familiarity seems to have been accidentally exploited by a token listed on Binance, which resulted in a meme coin rally on Tuesday.
Binance brings a new meme coin to the fold
Binance, in a press release on November 7, announced the listing of a new token on the exchange. While generally, a token listing is not a newsworthy event, Tuesday’s listing did grab the market’s attention, thanks to the confusion caused by the name of the cryptocurrency. A meme coin called Ordinals, trading with the ORDI ticker, shot up by nearly 40%.
Though the meme coin is based on the Bitcoin network and is a BRC-20 token enabled by the Ordinals protocol, it does not represent the protocol itself. However, the description used by the meme coin lacked clarity regarding the nature of its origin, as it stated,
“The total amount of bitcoins is 21 million, and one bitcoin can be subdivided into 100 million satoshi (i.e., satoshi is sat, the smallest unit of bitcoin). There are 2,100 trillion satoshi in total. Inscriptions are created by writing content to a satoshi using the Ordinals protocol. The inscription does not need to use a separate token, side-chain or Bitcoin, as what the Ordinals protocol does is to write information to each satoshi, such as text, pictures, audio and video, etc. Due to the size limit of the Bitcoin block, the main information used for inscription are text and pictures.
Consequently, investors and traders misunderstood the meme coin to be much more valuable than it actually is, resulting in increased demand. The resultant rally not only marked a 40% rise in 24 hours but also added to the rise from the past four days, bringing it to nearly 100%.
ORDI/USD 1-day chart
At the time of writing, the meme coin is trading at $10.35, standing at a six-month high.
DOGE, SHIBA rally thanks to new meme coins
While Dogecoin and Shiba Inu stand at the top of the meme coin tokens’ list owing to their large market capitalization, they have not been leading the meme coin market recently. Instead, emerging cryptocurrencies or random trending meme tokens have been acting as a catalyst for the entire market.
Earlier last week, a Solana-based meme coin by the name of BONK was responsible for pulling up the meme coin market by rallying by nearly 101% in the span of seven days. Similarly, in the past day, ORDI also propelled the meme coin market, resulting in Open Interest increases of Dogecoin and Shiba Inu eclipsing Bitcoin.
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