Simon’s Cat (CAT), a meme token based on intellectual property (IP), soared by 50% on Monday after securing a spot on Binance, becoming the first cat-themed token to receive such an honor, as other meme tokens face increasing legal scrutiny for potential copyright issues.
CAT’s price surged from $0.000039 to an all-time high of $0.000067 in early Tuesday trading, before slightly retracing. The token’s trading volume skyrocketed, increasing from $55 million to over $500 million, and open interest in its futures products nearly doubled, exceeding $60 million, reflecting growing expectations of future volatility with a bullish outlook.
Binance announced that it would distribute airdrops of CAT to users who had staked BNB tokens in the previous week’s Earn products, with plans to list the 1000CAT token (where one token equals 1,000 CAT) at 09:00 UTC on Tuesday.
CAT is the official token of Simon’s Cat, an animated series that features the humorous adventures of a hungry cat. With over 20 million followers across YouTube, Facebook, and Instagram, the brand’s strong IP backing provides significant value to the token, making it more attractive compared to other cat-themed meme tokens such as Popcat, MOG, and MEW.
Currently, CAT holds the fourth-largest market cap in its category, with MOG leading the pack at $1.1 billion. Enthusiastic traders, including the popular crypto investor @theunipcs — who turned $16,000 into $18 million through a successful BONK trade — have been vocal about their belief that CAT could soon overtake Popcat to become the top cat-themed meme coin. They cite CAT’s official IP backing, strong mainstream recognition, and a largely untapped market, with only a small percentage of the crypto community currently invested in the token.
IP-Backed Memecoins: The Future of Meme Token Investments?
The success of CAT underscores the increasing demand for IP-backed tokens, which offer legal protections that non-IP tokens lack. IP-backed tokens, such as CAT, are less likely to face legal challenges since their usage rights are more clearly defined through trademarks and copyrights. This reduces the risk of cease-and-desist orders or lawsuits for unauthorized use of intellectual property, which could severely impact the value of non-IP-backed tokens.
On the flip side, non-IP tokens like Chillguy (CHILLGUY) and Pnut (PNUT) are encountering legal challenges. For instance, Mark Longo, the owner of Peanut the Squirrel, sent a cease-and-desist letter to Binance, accusing the exchange of using his trademark without permission for the PNUT token. This legal threat caused PNUT’s price to dip by 5% in the last 24 hours.
In contrast, CAT benefits from official licensing by Simon’s Cat, which earned $5.8 billion in revenue last year. This gives the token a legal edge and enhances its credibility among investors, especially as major exchanges like Binance tend to avoid tokens with potential IP issues due to the risk of legal liability.
For traders like @theunipcs, CAT’s IP backing is a significant investment advantage, as it ensures the token will likely be listed on top exchanges and protected from legal battles. Official promotion of the token by Simon’s Cat also provides substantial marketing leverage, something other cat-themed meme tokens lack.
In a market filled with meme coins facing regulatory and legal challenges, CAT’s official licensing and brand recognition position it as a leader in the cat-themed meme token space, attracting both legal protection and investor confidence. As more traders flock to IP-backed tokens, CAT’s future in the meme coin world looks promising.
