MEMEFI soared nearly 200% today after Binance delisted its perpetual contracts, sending trading volume to new heights. This sharp rally, largely fueled by forced short covering, drew widespread attention—and growing skepticism—across the crypto community.
Meanwhile, today’s market move has renewed doubts about MEMEFI’s long-term prospects.
Delisting Triggers Short Squeeze and Record Volatility
MEMEFI’s explosive rally began when Binance announced it would delist MEMEFI perpetual contracts from its futures platform by August 11, 2025.
Traders holding short positions were forced to cover quickly, resulting in intense buy orders that drove MEMEFI’s spot price up by over 190% in 24 hours.
Also, daily trading volumes surged, with CoinMarketCap showing over $209 million traded as the price nearly tripled within a single session. This pattern aligns with typical “delisting pumps” observed when forced shorts drive spot prices quickly upward.
Forced closing of derivatives can spark powerful but temporary spot market pumps. Binance has seen similar events, such as the sharp rally that followed the delisting of ALPACA perpetual contracts.
Is MemeFi a Rug Pull?
Although MEMEFI’s price spiked, skepticism prevails. Many observers argue that the rally resulted mainly from mechanical short covering rather than genuine confidence. Social media highlighted doubts about whether MEMEFI’s gains could be sustained.
“Just wait a minute, @Vindicatedchidi will soon make a bullish post regarding #MemeFi because of this artificial spike. A token still down by more than 80% from its all time high. Such a baby trader,” wrote popular KOL Tola Joseph Fadugbagbe.
The surge was so intense that market observers warned of possible manipulation in less liquid markets. Delisting often creates fear or confusion, but contrarian traders may view the news as a setup for volatility.
Futures delisting may signal declining interest, but paradoxically, this reduced activity can make the market more volatile.
Meanwhile, today’s massive pump also created concerns for traders. Especially due to the ongoing silence from MEMEFI’s developers.
The official X account of MemeFi has not posted since late May (until today), raising fears about project abandonment and transparency issues.
Risks, Key Takeaways, and Investor Guidance
Short squeezes like MEMEFI’s are rarely sustainable, especially in thinly traded tokens. After shorts are forced to close, demand often fades and prices can fall as rapidly as they rose.
This episode highlights how derivatives market structure and exchange policy changes can dramatically impact spot token prices.
Investors should remain cautious. Binance guidance urges users to approach volatile periods carefully and stay alert to liquidation risks.
MEMEFI’s surge demonstrates both the risks and the unpredictable nature of crypto markets, serving as a reminder to focus on fundamentals—even during times of headline-grabbing price action.
The post MEMEFI Pumps 200% After Binance Delisting Spooks Market appeared first on BeInCrypto.