Memecoins
Over 15% of Crypto.com’s token supply comes from memecoins
According to blockchain analytics firm Nansen, Crypto.com has a total onchain portfolio of nearly $6 billion, with memecoins such as SHIB, PEPE, FLOKI, LADYS, and MOG accounting for more than 15% of the exchange’s token reserves held for customers.
Of Crypto.com’s $6 billion token reserve, over 15% comes from memecoins, including SHIB, PEPE, FLOKI, LADYS, and MOG. In comparison, Binance, with a token reserve of $102.9 billion, does not have any memecoins in its top 10 holdings, with PEPE and SHIB accounting for just 2.08% of all cryptocurrencies held on Binance.
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Posted on July 8, 2024 at 6:45 p.m. EST.
In the middle of a memecoin frenzyWith market sentiment sometimes dominated by the vagaries of these types of cryptocurrencies, one exchange stands out for the large share of its token reserves coming from memecoins.
Singapore-based exchange Crypto.com holds more than $920 million worth of memecoins for its customers as of Monday, representing more than 15% of the exchange’s entire token reserves, according to data from the blockchain analytics firm. Nansen.
Of Crypto.com’s nearly $6 billion onchain portfolio, 12% or $718 million comes from the dog-inspired memecoin SHIB, 2% or $124 million comes from the frog-based memecoin PEPE, while 1% or $82 million is comprised of several others such as FLOKI, LADYS, and MOG.
After BTC and ETH, the two largest cryptocurrencies by market cap, Crypto.com holds more SHIB in dollar terms than any other token, with PEPE being the exchange’s fifth-largest holding, according to Nansen. As of November 2020, Crypto.com had nearly $3 billion in reserves, of which about 20% or $558 million came from SHIB.
Learn more: Solana’s Memecoin Boom Reminds Many of Ethereum’s ICO Mania in 2017
“All customer assets held on our platform are fully collateralized (1:1), securely stored, and available for redemption,” Crypto.com’s webpage states. Representatives for Crypto.com did not immediately respond to Unchained’s request for comment.
Crypto.com’s share of memecoin holdings is “quite telling,” according to @Ponyongmiwho has been trading cryptocurrencies since 2020. “This shows that they are betting aggressively on these high-risk, high-reward tokens, reflecting the attitude of many young people in the industry towards investing.”
“Crypto.com is a meme site, and they typically list memecoins much earlier than other exchanges,” wrote the MOG accelerator @Virotechnics to Unchained on Telegram. “Retail continues to favor commercial memes over most other industries this cycle, and listing these projects early is a risk they take, but ultimately something that can be very rewarding for them and their users.”
Comparisons between Binance and Gemini
In comparison, Binance, which has a token supply valued at $102.9 billion, does not have a memecoin in its top 10. However, PEPE and SHIB come in at number 11 and 12, respectively, accounting for nearly $2.15 billion, or 2.08% of all cryptocurrencies on Binance.
While Crypto.com owns a higher proportion of memecoins relative to its total reserves, Binance holds more memecoin value in absolute dollar terms. Binance also holds $521 million worth of PEOPLE, BONKand FLOKI.
Learn more: 80% of tokens on Binance are down since their listing date
Compared to Crypto.com and Binance, rival US-regulated exchange Gemini not only holds fewer memecoins, but also has a smaller share of memecoins relative to its total reserves.
PEPE and SHIB are the fifth and sixth most liquid cryptocurrencies on Gemini, respectively accounting for 1.1% of the exchange’s total holdings, which total approximately $70.6 million.
“I think we will reach a peak when casinos start integrating memecoin trading into their gaming floors and when large memecoin-backed loans start to be liquidated. Given the current trend, another centralized exchange “A collapse due to excessive risk-taking would not surprise me,” added @Ponyongmi.
Crypto.com users can margin trade with a maximum leverage of 10x for over 200 pairs. DOGE and SHIB are eligible collateral for those wishing to margin trade, according to the stock exchange website.
CORRECTION (July 8, 2024 7:12 PM ET) Corrects misspellings of “FLOKI.”