The IP-backed meme coin, Simon’s Cat (CAT), saw a dramatic surge of 50% on Monday, making it the first cat-themed token to secure a highly sought-after spot listing on Binance, amid increasing scrutiny on meme tokens for potential plagiarism.
CAT’s price surged from $0.000039 to a record high of $0.000067 during early Asian trading on Tuesday, before retracting some gains. Trading volume also spiked, increasing from $55 million to over $500 million. The token’s open interest in futures products nearly doubled to over $60 million, reflecting heightened expectations of future volatility with a bullish bias.
Binance announced on Monday it would distribute airdrops of CAT to users who staked specific amounts of BNB tokens in their Earn products the previous week. Later on Tuesday, Binance also confirmed that it would list 1000CAT (where one token represents a thousand CAT) at 09:00 UTC.
CAT is the official token of Simon’s Cat, a popular animated series about the mischievous adventures of a hungry house cat. With over 20 million followers across platforms like YouTube, Facebook, and Instagram, the series has a substantial fanbase that backs the token.
Compared to other cat-themed meme coins such as Popcat, MOG, and MEW, CAT is often regarded as undervalued, thanks to its IP backing and spot listings. As of Tuesday, it ranks as the fourth-largest cat-themed meme token by market cap, following MOG, which is valued at $1.1 billion.
Well-known trader @theunipcs, who previously turned $16,000 into $18 million with a BONK trade, is among CAT’s vocal supporters. He predicts the token will soon surpass Popcat as the top cat-themed meme coin. According to @theunipcs, CAT benefits from mainstream recognition, strong IP backing, and limited competition, making it a prime candidate for a “flippening.”
Are IP-Backed Meme Coins the Future?
CAT’s rise coincides with growing legal challenges facing non-IP meme coins. Intellectual property (IP) encompasses characters, memes, video games, and cultural icons that have been officially trademarked or copyrighted before token offerings. Tokens backed by IP have clearer legal protections, as the creators or owners can license usage rights, minimizing the risk of lawsuits and other legal disputes.
Without IP backing, tokens like Chillguy (CHILLGUY) and Pnut (PNUT) are at risk of legal action from IP holders for unauthorized use of their creations. In fact, on Monday, Mark Longo, the owner of Peanut the Squirrel, sent a cease-and-desist letter to Binance, accusing the platform of infringing his trademark by listing and offering the PNUT token. Longo demanded penalties of up to $150,000 per infringement, causing the price of PNUT to drop by 5%.
Unlike these non-IP-backed tokens, CAT benefits from its official licensing with Simon’s Cat, one of the most well-known animated brands globally. The Simon’s Cat brand generated $5.8 billion in revenue last year, which bolsters CAT’s value proposition for investors.
For traders like @theunipcs, CAT’s official IP backing is key to its potential. He argues that major exchanges and entities will avoid dealing with meme coins that face IP issues, as they could be held legally accountable. By contrast, CAT’s strong association with the Simon’s Cat brand makes it a unique and legally secure investment opportunity.
Official promotions of CAT from Simon’s Cat channels further distinguish it from other meme tokens, providing it with a significant marketing advantage. For @theunipcs, this official endorsement could be the secret to CAT’s continued success in the meme coin market.
In a world dominated by meme coins, CAT’s IP backing could give it the longevity and stability needed to thrive—potentially giving it more than just one life.
