Thought to be "clinically dead", this meme coin surprisingly comes back to life: Price surges 300%, market shaken!

MemeFi – a tap-to-earn game on Telegram – is astonishing the cryptocurrency community after its native token MEMEFI unexpectedly increased by over 300% in less than 24 hours, from below 0.002 USD to 0.006 USD. This sudden price explosion quickly created a wave of FOMO on social media, making MEMEFI the hottest name in the crypto space at the moment.

MEMEFI price chart 1 day | Source: TradingView## Historical “Short squeeze”

The main reason for this spectacular bullish trend does not come from product improvements or grand marketing strategies, but rather originates from a delisting announcement.

Specifically, Binance – the world’s leading cryptocurrency exchange – decided to delist the perpetual futures contract of MEMEFI on August 11. This decision led to a chain reaction: many short sellers were forced to close their positions, significantly increasing the demand for spot buying, resulting in a massive short squeeze.

As a result, the daily trading volume of MEMEFI reached nearly 420 million USD, placing this token at the top of the growth rankings on several major crypto price tracking tools.

This case reminds many people of similar delisting instances in the past by Binance – such as with ALPACA – when this event once caused unexpected fluctuations in the spot market.

The real craze or a market scam?

However, not everyone believes that this is a solid comeback for MemeFi. Tola Joseph Fadugbagbe, a reputable crypto analyst, warns that MEMEFI is currently still over 80% lower than its peak. He suggests that this bullish trend is largely due to technical trading, such as short squeezes and bot activity, rather than reflecting the actual interest of long-term investors.

Additionally, another point of contention is the prolonged silence from the MEMEFI development team. The project’s official X account has had no activity since May – until a sudden post appeared today. This move raises questions for many about the project’s true level of commitment in the context of the market’s renewed attention.

MemeFi initially was just a tap-to-earn game on Telegram but the project quickly expanded into a “play-to-earn” ecosystem with many blockchain-integrated games and connection rewards.

Currently, MemeFi proudly owns:

This makes MEMEFI a representative token for the Meme + GameFi wave, especially in the emerging mini app trend on Telegram. However, the concerning thing is that despite having a large community, the project lacks transparency and clear direction, especially when the development team has hardly made any public moves for many months.

It is undeniable that the recent bullish trend of MEMEFI has brought attention back to a project that seemed to have “sunk”. However, with factors such as technical short squeeze, lack of transparent information, and an extended silent team, investors need to be extremely cautious.

If MemeFi wants to maintain growth momentum, the development team needs to restart communication activities, update the development roadmap, and leverage the huge user community they once built. Otherwise, the recent surge may just be another liquidity trap in the volatile world of crypto.

Annie