MUBARAK’s 40% Drop After Binance Listing Highlights Concerns Over Meme Coin Risks and CEX Practices

• MUBARAK’s 40% drop after Binance listing sparks renewed scrutiny of CEX practices and the risks tied to speculative meme coin launches.

• JELLY and HYPE volatility raises concerns about meme coin derivatives, with Hyperliquid pledging stronger safeguards after a short squeeze.

• Platforms like Pump.fun introduce revenue sharing and token burning to drive more sustainable growth.

MUBARAK’s sharp 40% drop post-Binance listing reignites discussions on centralized exchange practices and the volatile meme coin landscape.

MUBARAK Made The Community Discuss CEX Listing Processes

The steep drop in MUBARAK, now down 40% since its Binance debut, has reignited concerns about the quality of recent listings on centralized exchanges. Binance recently ended its first listing vote, with BROCCOLI and Tutorial surging.

Critics argue that these incidents undermine trust in both DeFi and CEX platforms, as meme coins continue to dominate headlines while more stable crypto sectors struggle for attention.

Still, some platforms like Pump.fun are pushing for innovation, introducing features like token burning and revenue sharing in an effort to steer meme coins toward a more sustainable future.

These concerns have only grown louder following the listing of speculative meme coins on Binance, including BNB Chain tokens like JELLY, which have added to the scrutiny.

Binance founder Changpeng Zhao (CZ) has addressed this criticism, stating that token listings should not dictate long-term price action.

While listings can offer liquidity and improve market access, CZ emphasized that any price impact should be short-term. In the long run, token value should reflect real fundamentals—such as team commitment, development activity, and network performance.

Still, even as the community pushes for more transparency, Binance Alpha has continued to list controversial tokens, including two Studio Ghibli-themed meme coins.

Hyperliquid Crisis Made Users Question Meme Coins

MUBARAK’s drop was not the only crisis in the meme coin ecosystem this week. HYPE experienced a sharp decline following the JELLY short squeeze, triggering widespread speculation about the role of Hyperliquid and meme coins in the crypto ecosystem.

Some users have even questioned if this could be the beginning of an FTX-style collapse as concerns grow over the unchecked volatility tied to meme coin derivatives.

The JELLY controversy has ignited debate around the fragility of emerging platforms and whether enough safeguards are in place to prevent systemic fallout from meme-driven market events. In response to the backlash, Hyperliquid announced it would strengthen its security measures to prevent similar incidents in the future.

Jean Rausis, co-founder of the decentralized finance ecosystem SMARDEX, told COINOTAG that the DeFi ecosystem needs to think about the image it sends to the market:

“If we want DeFi to be adopted, the ecosystem needs to gain trust not only with its existing users but also in terms of the image it presents in the news. And it’s clear that with projects wrongly labeling themselves as “decentralized”, more incidents like this will happen.”

Sectors Like RWA Could Help To Grow Crypto Credibility

Kevin Rusher, founder of decentralized lending protocol RAAC, described the situation as a major blow to DeFi’s credibility. “This is another setback for DeFi adoption, but it’s not a surprise,” he said, noting that meme coins have reignited retail greed and diverted liquidity away from more sustainable sectors of the ecosystem.

He warned that tokens like TRUMP and MELANIA had captured too much mindshare during the last market surge, leaving DeFi vulnerable to speculative chaos.

Still, Rusher pointed to the growing involvement of institutions like BlackRock as a sign of hope:

“But it looks like institutions and big players like BlackRock also understand this need for stability in crypto, which is why they are now seriously focused on the tokenization of Real World Assets (RWAs). The unfortunate reality is that memecoins are likely here to stay, and they will be a real obstacle for DeFi growth in the short term. However, with RWAs bringing huge liquidity into the system from traditional finance, this sector will finally have the opportunity to grow without memecoin frenzies putting the whole ecosystem in danger.” – Rusher told COINOTAG.

More Innovation Could Bring Renewed Interest In Meme Coins

In a recent conversation with Bankless, PumpFun co-founder Alon Cohen shared insights about the meme coins market, highlighting PumpFun’s 4Chan-inspired aesthetic, bonding curve pricing model, and new creator-focused initiatives.

Pump.fun has generated over 8.8 million tokens and once peaked with a record $14 million in daily revenue, totaling $600 million since launch.

Alon emphasized that while the meme coin market is cooling—down nearly 49% from its $125 billion peak in December 2024—Pump.fun remains committed to supporting creative and community-driven projects.

To boost long-term sustainability, the team is now introducing revenue-sharing mechanisms for token creators, a transparent fee structure, and token-burning features to reduce the extractive nature of meme coin launches.

With new mechanisms like this, more buyers could come in, and a new generation of meme coin traders could emerge as the ecosystem tries to become more sustainable.

Conclusion

Amid the challenges faced by the meme coin sector, including the notable MUBARAK drop, the crypto community continues to seek solutions to reinforce credibility and foster innovation. As platforms adapt and evolve, the focus on sustainable practices and transparency is critical for the future outlook of both meme and decentralized finance ecosystems.